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Breitburn Energy faces competing bid to reorganize in bankruptcy

Published 10/03/2017, 11:05 AM
© Reuters.  Breitburn Energy faces competing bid to reorganize in bankruptcy
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  • Bankrupt Breitburn Energy Partners (OTCPK:BBEPQ) says an ad hoc group of bondholders have agreed to support a reorganization plan that would give them 92.5% of the equity in a new company and split off some of its assets, according to an SEC filing.
  • The plan would not include assets in the Permian Basin but participants would include Permian assets via a $775M rights offering; the plan would leave nothing for preferred and common shareholders.
  • Court papers show the ad hoc group includes Elliott Management, Marathon Asset Management, Merrill Lynch and WL Ross.
  • Court documents also indicate Diamondback Energy (NASDAQ:FANG) recently entered a stalking horse bid to purchase BBEP's Midland Basin assets in bankruptcy for $675M, or ~$30K per undeveloped acre.
  • Source: Bloomberg First Word
  • Now read: Breitburn Energy: A Nasty Court Battle Is Developing


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