Breitburn Energy Partners modified third Chapter 11 plan confirmed

By Caroline Salls

Pittsburgh, March 26 – Breitburn Energy Partners LP’s third amended plan of reorganization with technical changes was confirmed Monday by the U.S. Bankruptcy Court for the Southern District of New York.

The court denied confirmation of the previous version of the plan earlier this month.

Under the amended plan, holders of unsecured notes claims who are not eligible to participate in the company’s rights offering will receive a share of New Permian Corp. shares equal to 4.5% of their notes holdings and cash equal to 7.44% of their notes holdings. However, holders of these claims who elected to receive cash instead of shares will receive cash equal to 11.94% of the claim amount, up from 4.5% under the previous version of the plan.

The total amount of New Permian shares allocated to this subclass will be capped at $5.44 million, up from $5.42 million.

Holders of general unsecured claims will receive a share of New Permian Corp. shares equal to 4.5% of their notes holdings and cash equal to 7.44% of their notes holdings. The cash distribution was added to the modified plan.

The total amount of New Permian shares allocated to this subclass will still be capped at $817,240 under the modified plan.

RBL lenders will receive a share of cash equal to the claims amount minus $400 million and participation in an amended and restated term loan exit facility in the principal amount of $400 million.

Each RBL lender will also have the right to convert its entire portion of the exit facility to an equal amount of a revolving credit facility.

Breitburn’s common and preferred unitholders will receive no distribution.

Breitburn is a Los Angeles-based oil and gas master limited partnership focused on the acquisition, development and production of oil and gas properties throughout the United States. The company filed for bankruptcy on May 15, 2016 under Chapter 11 case number 16-11390.

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