Will the Investors of Atlas Resource Partners LP Be Left Holding the Tax Bill After Restructuring?

When Atlas Resource Partners LP filed for Chapter 11 bankruptcy in July, it negotiated away $900 million of debt.  This restructuring may have reduced Atlas’ debt, but because Atlas is an MLP or Master Limited Partnership, it also could have left its investors with a large tax bill.
The negotiated plan has the company’s unit holders receiving no recovery and their ownership stakes canceled. As unit holders in an MLP the unit holders could face a tax bill for the debt that Atlas canceled in their Chapter 11.
Atlas Resources, is based in Pittsburgh.  They filed for bankruptcy claiming assets in the range of $1 billion to $10 billion, with liabilities in the same range. The oil and gas producer has 14,000 producing wells in 17 states.
Atlas Resource Partners LP now joins dozens of oil and gas producers that have filed Chapter 11 after energy prices began declining in 2014. Like companies such as SandRidge Energy Inc. and Linn Energy LLC, Atlas had a restructuring plan already worked out.
Since 2015, at least 85 North American oil and gas producers have declared bankruptcy, involving approximately $61.2 billion in debt due to the plummeting prices of crude oil.  Soreide Law Group hears from a growing list of investors whose brokers recommended a high-concentration of risky oil and gas stocks and MLPs for their conservative portfolios creating devastating losses, which in many cases were set up for retirement.  These investors may be looking at a possible change in their lifestyles.
If you or a loved one have experienced losses due to your broker/financial advisor’s over-concentration of Atlas Resource Partners, LP (ARP) or any other energy-related company, call Soreide Law Group for a free consultation with a lawyer regarding the possibility of recovering your losses at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA and we operate on a contingency basis.