In doing my research, I came across several letters to the court regarding our case. I went through the company IR page. The SEC Filings - Breitburn Energy Partners LP - Master Limited Partnership, shows that they planned this attempt to wipe out shareholders.
"On April 13, 2016, the Board of Directors (the “Board”) of Breitburn GP LLC (the “General Partner”), the general partner of Breitburn Energy Partners LP (the “Partnership”), adopted key employee incentive compensation plans. Meridian Compensation Partners, LLC, an independent compensation consultant, advised the Board with respect to the formulation and adoption of the plans
Key Executive Incentive Plan Participants in the Key Executive Incentive Plan are the following named executive officers of the General Partner: Halbert S. Washburn, Chief Executive Officer; Mark L. Pease, President and Chief Operating Officer; James G. Jackson, Executive Vice President and Chief Financial Officer; and Gregory C. Brown, Executive Vice President, General Counsel and Chief Administrative Officer. Participants in the Key Executive Incentive Plan will voluntarily forfeit all long-term incentive awards previously granted to them in 2016, as described in the Partnership’s Current Report on Form 8-K, dated February 3, 2016, and will voluntarily forego participation in the Partnership’s 2016 Short Term Incentive Plan (“STIP”).
Pursuant to the terms of the Key Executive Incentive Plan, participants will be eligible to receive cash payments in two equal installments. Participants will be eligible to receive the first payment upon the Partnership entering into a definitive agreement for a transaction that de-levers the Partnership’s balance sheet and on satisfactory performance against 2016 objectives. The participants will be eligible to receive the second payment upon consummation of such transaction (after determination by the Board of Directors of performance achievement). Payments are contingent on the Partnership meeting performance thresholds tied to production and lease operating expense to be established by the Compensation and Governance Committee of the Board (the “Compensation Committee”) and satisfactory individual performance of each participant. The maximum aggregate amount payable to all participants under the Key Executive Incentive Plan is $10,730,200."
Within 30 days of this document, the company had filed bankruptcy, but not before most of the mentioned board members unloaded their shares. Later, as we know, the company petitioned the court for incentives, masquerading them as 'bonuses' needed to keep them working hard for all stakeholders; when truthfully it was already planned. They sought and received these performance based bonuses twice, convincing the court that the company had performed well enough to warrant what they had told us, in April, would performance based incentives.
Breitburn heard the judge's position regarding these bonuses, and that the requests for them indicated to the court and stakeholders that they were actually honoring their responsibility as a fiduciary. However, one the checks were cut, BBEP, again has consistently breached fiduciary rule. For this reason, I feel that the board should be disbanded, the Firm should be shut down and it assets sold to the highest bidder.
The company has been investigated by the SEC, who found that according to the company provided numbers, that the company could pay off all of it's debt and still have money left to honor its responsibility to it's common shareholders. However the company has in essence, called the SEC liars, and proceeded with this farce of a bankruptcy
AI
