Breitburn Energy Partners’ statutory committee of equity security holders filed with the U.S. Bankruptcy Court an objection to the Company’s motion for further extension of the exclusivity exclusive periods.
The committee asserts, “While the Equity Committee does not adopt the unsecured creditors’ committee’s views as to where the fulcrum class lies, the Equity Committee believes that a competitive and robust sale process for the Debtors’ assets will provide the clearest and most accurate view of the value of their assets, thereby eliminating the uncertainty imposed by the competing views of valuation that continue to divide these chapter 11 cases….The Equity Committee understands the situation, the Debtors have a proposal from a select group of bondholders to purchase the Debtors’ ‘crown jewel’ Permian assets and 7% of their legacy assets for $775 million without any opportunity for higher and better bids, and an unsolicited section 363 stalking horse offer, subject to higher and better bids, from a very credible third-party outside the existing capital structure to acquire the Permian assets for $725 million, which party just yesterday bid against itself and increased its offer by an additional $50 million over and above its original offer without any due diligence or engagement from the Debtors.”
In addition, “The Equity Committee is concerned that the Debtors’ fatigue with these chapter 11 cases may cause them to pursue a plan of convenience and expediency with the bondholders, while allowing competitive offers to lapse, thereby depriving those unsecured claimholders and preferred and common unitholders prejudiced by the bondholder proposal the opportunity to realize potentially value-maximizing alternatives through a Court approved sale and auction process. The Debtors cannot dispute that each of the bondholder proposal and the stalking horse offer seeks to consummate a sale of the Debtors’ assets. Indeed, a termination of exclusivity now will foster this competitive dynamic, which will only hasten, not impede, the successful resolution of these chapter 11 cases.”
Read more Breitburn Energy bankruptcy news.
The post Breitburn Energy Bankruptcy Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.