Breitburn Energy Partners LP fka BBEPQ

[black_slk320]

The SEC sent in their letter on Oct. 7th and said that their ballance sheet at the end of Q1 showed shareholder equity of $1.3B and their Aug MOR still showed an estimated $985M in share equity. Oil prices were around $50/barrel when they sent in the letter. The most recent MOR has share equity down to $677M (this is before paying around $550M to the preferred shareholders).

The SEC never said $900 - $2B anywhere in their letter (the highest equity amount was $1.3B in the Q1 report). They said an EC should be appointed because they did not appear to be hopelessly indebted. The EC will certainly argue about what the value is of the assets, but until they shop the assets around, they won't know what someone else will pay for them.

I disagree. Oil was $26/Barrel when the company, BBEPQ filed Bankruptcy. The SEC letter to the court said the company asset outweigh debt and liabilities by $900M - $2B. If oil was $26/B then, and $45/B now, their assets are now more than what the SEC investigation produced.

The unsecured creditors are pushing for asset sales because they are in line just in front of the preferred shareholders and their valuation models are the ones that might result in something for the commons.

The MOR from October 31st indicates that the company is having a tough time even with oil around $50/barrel (they wrote down the value of some assets because they need even higher oil prices). Oil is now around $45/barrel.