Houston, Jan 02 — As previously announced, USD Partners LP (OTC: USDP) (the “Partnership”) sold its last remaining operating asset, ceased operations and announced its intention to cancel the equity of the Partnership following termination of its credit facility. The Partnership has taken affirmative steps to wind down and liquidate, and the Partnership has submitted a request to the Financial Industry Regulatory Authority (FINRA) to halt trading of the remaining Partnership equity. The Partnership expects these actions to be completed as early as January 1, 2026, although a firm date has not been determined. The Partnership’s unitholders will not receive any payments or distributions from the Partnership upon its wind down.
Because the Partnership is not able to repay its remaining indebtedness in full, the Partnership may recognize cancellation of indebtedness income (“CODI”) for U.S. federal and state income tax purposes in 2025 in excess of the net taxable losses the Partnership may recognize in 2025 in connection with the sale of the Partnership’s last remaining asset. This CODI will be allocated to the Partnership’s unitholders in 2025 and might result in a tax obligation in excess of the value of the common units held by such unitholder. The exact tax impacts will vary for each individual unitholder depending on their unique circumstances. The Partnership evaluated available wind-down and liquidation alternatives in consultation with its advisors and has proceeded with the course believed to be most appropriate under the circumstances. The Partnership will provide the final Schedule K-1 (Form 1065) to unitholders sometime in March 2026. The Partnership is not providing financial or tax advice to investors.
Investors are advised to consult their own financial and tax advisors.