Oil & Gas - Energy - Commodities - Resources (OILBRENT)

[benfrankledger]

$BBEPQ - Breitburn Energy Partners (OTCPK:BBEPQ) unitholders launched a last-ditch legal effort today to prevent the bankrupt company from wiping out their investment and sticking them with a fat tax bill.

At a hearing in U.S. Bankruptcy Court in New York, an equity committee lawyer said Breitburn’s reorganization plan was based on an “indefensibly low” valuation; Lazard Freres, the company’s investment banker, estimates BBEP’s enterprise value, which includes debt and equity, at ~$1.6B, while the equity committee values the company at $3.8B, which would ensure unitholders some recovery on their investment and eliminate a tax charge.

Breitburn's lawyers urge the bankruptcy court judge to approve the reorganization plan which envisions splitting BBEP's oil and gas assets into two new companies; it has the support of creditors holding $3B-plus in claims.