On Sunday, May 15, 2016, Breitburn Energy Partners LP (BBEP), filed for chapter 11 bankruptcy protection due to plummeting oil prices.
Business operations will continue while Breitburn negotiates a restructuring and participates in talks with creditors in hopes of coming back to the market after the restructuring. Investors in Breitburn Energy will be hit hard as it enters bankruptcy. The management released a statement this morning stating that the firm would be seeking a voluntary Chapter 11 bankruptcy filing.
By May 1st., 2016, 27 oil and gas exploration and production companies had filed for bankruptcy protection. As of today, two more filings, Breitburn and SandRidge were announced.
Breitburn Energy Partners has been down more than 90% over the past year. They are heavily weighed down by debt, especially bank debt. Operationally the company is doing a decent job due to strong oil hedges and cost reduction efforts. Breitburn's cash flow was looking positive this year. With possible cuts in expenditures, selling of assets and hedges due in 2018 and 2019, some wonder the need for bankruptcy.
Breitburn Energy Partners secured a $75 million debtor-in-possession financing. They also have cash from their operations and cash on hand, to fund its operations during the bankruptcy process. Breitburn listed assets in the range of $1 billion to $10 billion, and liabilities of $1 billion to $10 billion.
If you suffered devastating losses due to investing at the recommendation of your broker or financial advisor, in Breitburn Energy Partners oil and gas stock, call Soreide Law Group for a no-cost consultation with an attorney at: 888-760-6552.
Soreide Law Group represents clients nationwide before FINRA.
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