The settlement includes a cash payment of US$150 million to REX six months after Ultra emerges from chapter 11, but no later than 30 October 2017. Additionally, Ultra has agreed to enter into a new seven year firm transportation agreement with REX commencing 1 December 2019 for service west-to-east of 200 000 dekatherms per day at a rate of approximately US$0.37, or approximately US$26.8 million annually.
Michael Watford, Chairman, President and Chief Executive Officer of the Company, said: "Our settlement of REX's claim is another major achievement in our in-court restructuring. This settlement removes the uncertainty around this very significant claim and represents a critical step towards the implementation of the plan of reorganisation we filed last month. We appreciate the co-operation of REX and are pleased to be working with them again as business partners."
