Summary
This 8-K filing from ONEOK Inc. (OKE) on January 18, 2002, addresses a critical event concerning a potential technical default on financing leases related to its Bushton gas processing plant in Kansas. The default arose due to the bankruptcy of Enron, a guarantor of these leases. ONEOK has secured a waiver that resolves concerns about this technical default, ensuring the continued operation of the plant and the satisfaction of its lease obligations. The Bushton plant was acquired by ONEOK from Kinder Morgan in April 2000, with Kinder Morgan having previously acquired it from Enron. The Enron bankruptcy created a ripple effect, impacting lease guaranties. The waiver obtained by ONEOK effectively mitigates the immediate financial and operational risks associated with this situation, allowing the company to proceed with its lease payments as planned and maintaining stability for this key asset.
Key Highlights
- 1ONEOK Inc. received a waiver addressing a potential technical default on financing leases for its Bushton gas processing plant.
- 2The technical default was triggered by the bankruptcy filing of Enron, a guarantor of the leases.
- 3Kinder Morgan and ONEOK are also guarantors of these leases.
- 4The waiver eliminates concerns related to the technical default.
- 5ONEOK will continue to meet all payment obligations under the leases.
- 6The Bushton plant was acquired by ONEOK in April 2000 from Kinder Morgan.
- 7The filing includes a press release dated January 18, 2002, as an exhibit.