Equity investors in Breitburn Energy Partners LP can receive representation on an official committee, a bankruptcy court said on Friday, giving investors in the bankrupt oil and gas company a voice in restructuring negotiations, Reuters reported. Breitburn, based in Los Angeles, filed for chapter 11 protection in May, one of more than 100 energy companies that have sought court protection from creditors in the worst energy price crash in a generation. The public unit holders of the master limited partnership began fighting for an official place in court soon after, saying that they could end up owing taxes if the company canceled some of its roughly $3.1 billion in debt in a reorganization. "(The) court concludes that ... equity has carried its burden that Breitburn does not appear to be hopelessly insolvent," Bankruptcy Judge Stuart Bernstein of the Southern District of New York said. Judge Bernstein said that the committee should focus on Breitburn's plan of reorganization, which has not been filed, and its solvency. The committee should also look into the potential tax hit the equity holders face, he said. Read more.
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