This was posted on facebook page, by a group as myself, invested in BBEPQ. Seems like CODI will soon be cancelled and focus will be up shareholders commons IMO.
Correct me if wrong but 75% was benifitual for commons investors. Hope tomorrow sees a 100% or more increase as Vanguard Resource yesterday did.
Tobias Barbir with Mark Maurer
3 hrs ago.
ATTENTION DETAILED UPDATE from today's hearing - you read it here first, before it was even released to the public.
During today’s Breitburn Energy omnibus hearing, Judge Stuart Bernstein, without prompting from the parties, asked counsel to the debtors, Ray Schrock of Weil Gotshal, whether any plan to be proposed by the debtors could satisfy the Bankruptcy Code’s best interests test if equity were to object to plan confirmation. Judge Bernstein asked that if equityholders were to receive no recovery under a proposed chapter 11 plan or in a chapter 7 liquidation, would those holders not be better off in a chapter 7 that would not include a discharge of indebtedness or any cancellation of debt income, or CODI. After generally assuring the court that a proposed plan would satisfy the best interests test, Schrock said that the debtors would revert back on the tax question. Schrock said that he was sure that there was a “good answer” but that he was “perplexed,” adding that he was sure that equityholders appreciated the judge’s comments.
Otherwise during today’s hearing, Judge Bernstein approved the debtors’ hedge proceeds motion and the equity committee’s discovery motion.
On the hedge proceeds motion, which would result in the application of $455.8 million in proceeds to prepetition first lien debt and to hedge termination payments, the debtors reached a consensual resolution with the equity committee, but the parties’ proposal was ultimately modified by the judge. The resolution would have provided that the equity committee would not be prejudiced from bringing a claim solely against the debtors with respect to the application of the proceeds, but Judge Bernstein stated that he could not now authorize the application of the hedge proceeds if the equity committee could later attack the debtors’ business judgment with respect to that application. Schrock for the debtors, Vincent Indelicato of Proskauer Rose, counsel to the equity committee, and David Neier of Winston & Strawn, counsel to administrative agent Wells Fargo, said that they would work on an order in accordance with the judge’s comments.
With respect to the equity committee’s requested valuation discovery, Judge Bernstein stated multiple times that the equity committee is entitled to valuation discovery. Schrock and Edward McCarthy of Weil argued that the requested discovery was both “premature” and “too much too soon.” Schrock also noted that the valuation work to date has been done at the direction of counsel so there may be privilege issues. McCarthy further argued that the discovery requests were a “huge overreach,” with Judge Bernstein responding that the parties should meet and confer about the proper scope, and then bring any issues to the court.
In approving the equity committee’s request to seek valuation discovery from the debtors, Judge Bernstein said that the committee is entitled to such discovery but that specific requests were not being approved today. The debtors and equity committee would need to meet and confer on specific requests, taking into account proportionality and privilege issues, according to Judge Bernstein.
Further, according to debtors’ counsel, after the equity committee withdrew its objection, there are no objections to the debtors’ requested plan filing exclusivity being extended to Aug. 31. In any event, the debtors will proceed with the exclusivity extension hearing tomorrow, Wednesday, July 19, at 2 p.m. EDT so the debtors can place certain evidence into the record.
Finally, counsel to the debtors, Prashant Rai of Weil, noted that the debtors and executory contract counterparty Transpetco Transport reached a settlement resolving their rejection damages dispute, resulting in a $350,000 cash payment to Transpetco and an allowed $5.5 million unsecured rejection damages claim.
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