Breitburn Energy wins further exclusivity extension to draw up plan

By Caroline Salls

Pittsburgh, Jan. 10 – Breitburn Energy Partners LP received an extension of its exclusive periods for filing and soliciting votes on a Chapter 11 plan, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Breitburn’s exclusive filing period was extended through March 13 from Jan. 10 and the solicitation period through May 12 from March 10.

“Substantial cause exists to further extend the exclusive periods in these admittedly complex cases,” Breitburn said in the motion.

“Indeed, the failure to do so at this juncture of these cases would be in direct contravention of the intent and purpose of section 1121 of title 11 of the United States Code, would undermine the ability to achieve a consensual plan in these cases and would create a chaotic condition that not only will be litigious and costly, but will be value destructive, to the detriment and prejudice of all parties in interest.”

The company said its official committee of unsecured creditors and official committee of equity security holders both support the extension.

Breitburn said the extension will enable it to complete a plan formulation and negotiation process and give it “the full and fair opportunity to propose a reorganization plan as contemplated by Chapter 11 of the Bankruptcy Code.”

Breitburn is a Los Angeles-based oil and gas master limited partnership focused on the acquisition, development and production of oil and gas properties throughout the United States. The company filed bankruptcy on May 15, 2016 under Chapter 11 case number 16-11390.

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