Kinder Morgan’s Ruby Pipeline Debt Talks Stall Over Bond Paydown

Restructuring talks between Ruby Pipeline LLC’s owners and bondholders have hit a snag less than two weeks before the company has nearly half a billion dollars of bonds come due, according to people with knowledge of the matter.

Kinder Morgan Inc., co-owner and operator of the pipeline, is asking bondholder to accept a smaller amount of cash to pay down the debt, but bondholders won’t agree to a haircut, said the people, who asked not to be identified because the talks are private.

Ruby Pipeline’s $475 million of 8% senior unsecured notes come due April 1. The bond ...