Breitburn Energy Partners

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Situation Overview

  • As a result of a prolong period of declining oil prices, a highly levered balance sheet after a significant acquisition, and an upcoming redetermination of the RBL credit facility, the company filed for bankruptcy in May 2016.
  • The debtors obtained a $150mm DIP facility from its RBL lenders which provided liquidity and enough runway to pursue a plan of reorganization.
  • Given the debtors’ MLP legal organization the public equity holders were exposed to a significant tax liability under a cancelation of debt scenario; as a result, the judge ordered an official equity committee to be formed.

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