Contingencies and commitments |
9 Months Ended |
|---|---|
Apr. 30, 2025 | |
| Contingencies and commitments | |
| Contingencies and commitments | L. Contingencies and commitments Litigation Ferrellgas’ policy is to expense litigation costs as incurred. Ferrellgas’ operations are subject to all operating hazards and risks normally incidental to the handling, storing, transporting and otherwise providing for use by consumers of combustible liquids such as propane. As a result, at any given time, we can be threatened with or named as a defendant in various lawsuits arising in the ordinary course of business. We are not a party to any legal proceedings other than various claims and lawsuits arising in the ordinary course of business. It is not possible to determine the ultimate disposition of these matters; however, management is of the opinion that there are no known claims or contingent claims that are reasonably expected to have a material adverse effect on our consolidated financial condition, results of operations and cash flows. Long-term debt related commitments Ferrellgas has long and short-term payment obligations under agreements such as the indentures governing its senior notes. See Note E “Debt” for a description of these debt obligations and a schedule of future maturities. |
| Ferrellgas Partners Finance Corp | |
| Contingencies and commitments | |
| Contingencies and commitments | B. Contingencies and commitments Partners Finance Corp. serves as co-issuer and co-obligor for debt securities of Ferrellgas Partners. As of April 30, 2025, Ferrellgas Partners had no debt securities outstanding, and Partners Finance Corp. therefore was not liable as co-issuer for any such debt securities. |
| Ferrellgas Finance Corp | |
| Contingencies and commitments | |
| Contingencies and commitments | B. Contingencies and commitments Finance Corp. serves as co-issuer and co-obligor for debt securities of the operating partnership. As of April 30, 2025 and July 31, 2024, Finance Corp. was liable as co-issuer and co-obligor for the operating partnership’s (i) $650 million aggregate principal amount of unsecured senior notes due April 1, 2026 (the “2026 Notes”) and (ii) $825 million aggregate principal amount of unsecured senior notes due April 1, 2029, each of which were issued on March 30, 2021. Finance Corp. is also liable for borrowings under the operating partnership’s Credit Facility, which matures on December 31, 2025. Due to the timing of the maturities of both the 2026 Notes and the Credit Facility, and the $154.9 million in letters of credit which it secures as of April 30, 2025, there is substantial doubt about Finance Corp.’s ability to continue as a going concern for at least one year from the date of issuance of this Quarterly Report. Its condensed consolidated financial statements were prepared on the assumption that it will continue as going concern. We have developed and received internal approval on a plan to restructure our capital structure, debt and refinance and/or extend the maturity date for the Credit Facility. External advisors have been engaged to assist in this process. The general partner believes that it is probable that the plans will be successfully implemented prior to the maturities of the 2026 Notes and Credit Facility, and these plans will alleviate the substantial doubt about the Company’s ability to continue as a going concern. |