Breitburn Energy Partners LP, Los Angeles, filed voluntary petitions on May 16 for Chapter 11 in the US Bankruptcy Court for the Southern District of New York. The firm reported debt of $3.4 billion as of Mar. 31.
The firm says cash from operations, cash on hand, and a $75-million debtor-in-possession (DIP) financing facility will provide it “more than adequate liquidity to fund its operations during the restructuring process.”
Breitburn’s DIP financing facility lenders have offered to arrange an additional $75 million of DIP financing at the firm’s request. The Chapter 11 cases will facilitate the restructuring of Breitburn’s balance sheet.
Breitburn is a master limited partnership with producing and nonproducing crude oil and natural gas reserves in Ark-La-Tex, the Midwest, the Permian basin, the Midcontinent, the Rockies, the Southeast, and California.
