Kinder-Backed Ruby Pipeline Hits Snag in Debt Talks

Ruby Pipeline LLC has reached an impasse with bondholders over a restructuring proposal that would allow Pembina Pipeline Corp. and Kinder Morgan Inc. to retain control of its natural-gas line that runs from Wyoming to Oregon, people familiar with the talks said.

Kinder Morgan and Pembina, co-owners of the 680 mile (1,090 km) pipeline, had offered to cancel some of their preferred equity holdings while retaining full control of Ruby assets, said the people, who asked not to be identified because the discussions are confidential.

An ad hoc group of bondholders objected to the plan because it would have ...