Breitburn Energy Files For Bankruptcy Protection

(RTTNews) - Breitburn Energy Partners LP (BBEP), an independent oil and gas master limited partnership, announced Monday that it has filed for bankruptcy protection.

The company and certain of its affiliates filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.

Breitburn expects to continue its operations without interruption. The company noted that cash from its operations, cash on hand, and a $75 million debtor-in-possession financing facility or DIP Financing Facility will provide it with 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 Breitburn's request.

The Chapter 11 Cases will facilitate the restructuring of Breitburn's balance sheet.

Breitburn said it plans to utilize the Chapter 11 Cases to continue and complete its discussions with key stakeholders and evaluate other value-maximizing opportunities to facilitate an expedited balance sheet restructuring. That would leave Breitburn as a stronger, deleveraged, and recapitalized enterprise.

Weil, Gotshal & Manges LLP is serving as Breitburn's legal advisor, Lazard Frères & Co. LLC is serving as investment banker, and Alvarez and Marsal North America, LLC is serving as financial advisor.