- At a bankruptcy court hearing today, Breitburn Energy Partners (OTCPK:BBEPQ) provided detailed plans to exit Chapter 11 by transferring its assets to creditors, while opponents seek an auction of main reserves to generate more money.
- BBEP proposed splitting into two companies, with one owning its Permian Basin assets in Texas and the other owning its reserves in California, the Rocky Mountains, U.S. Midwest and U.S. Southeast, and bondholders would be given the opportunity to buy their share of the Permian company’s stock, valued at $775M, in a rights offering.
- Unsecured creditors and unitholders argued at the hearing that the rights offering amounted to a sale but one that benefited a few large bondholders without generating a market-tested price.
- A Nov. 8 hearing is expected for reviewing the disclosures in the plan; if the disclosures are approved, creditors would vote on the plan by Dec. 11.
- Now read: Breitburn Energy Files New Plan And No Asset Sale Expected
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