Breitburn Energy Partners LP fka BBEPQ

[black_slk320]

I have the SEC letter right in front of me.

The SEC stated "POTENTIALLY "MORE" THEN ONE BILLION", that was put out 10/14/16, before BBEPQ put out or figured out the third quarter report! The value was based on the time BBEPQ filed BK! Then On 7/28, Bonuses payout of 33million! Then 8/21, "Wilbur Ross's next Big Bet: Oil and Gas" BBEPQ!

The only filing on 10/14/16 was #701 and the transcript is restricted until after 1/12/2017. You must be reading someone's interpretation of the SEC letter.

The SEC points out the company stated equity valuations on 3/31 and 8/31 (and yes, $1.3B is more than $1B, but that number dropped in August and continues to drop):

With respect to the hopeless insolvency prong,3 the Debtors’ financials indicate that the Debtors do not appear to be hopelessly insolvent here. The balance sheet as of the petition date shows more than $1.3 billion in stockholder equity. Even post-petition, in the Debtors’ most recently filed Monthly Operating Report for the period ending August 31, 2016, the Debtors’ balance sheet reflects an estimated $985 million in stated equity.4 At this time, Breitburn has not filed a plan of reorganization, but these numbers suggest that it is likely there will be some distribution available for shareholders. In a case that will likely involve a heavily negotiated plan of reorganization, the extent of any shareholder distribution could be determined by whether shareholders have adequate representation during the plan negotiation process.

The SEC was just asking for an EC to protect shareholders since there was still some equity left as of the August 31st MOR. As of the October 31st MOR there is just $667M left and that was with oil in the low $50s. If oil stays in the mid $40s, there will be nothing left (which is why I say that everything depends on the OPEC and Russia production cuts that are suppose to happen at the end of November).

The EC will certainly argue that the company is worth more than what the company states in their MOR, but they need offers for the assets if they want more than the company stated book value.