Breitburn Energy Partners LP can begin seeking creditor support for a reorganization plan that would split the bankrupt U.S. oil firm into two separate, creditor-owned companies, a U.S. court ruled yesterday, Reuters reported. One of the companies would be created through a $775 million new share offering for unsecured creditors, led by investment firms Elliott Management Corp. and WL Ross & Co., and hold prized Permian Basin assets. The other would be owned by secured creditors with $793 million of debt, and would house oil reserves in California, the Rocky Mountains, the U.S. Midwest and U.S. Southeast. Bankruptcy Judge <b>Stuart Bernstein</b> yesterday approved the disclosures in Breitburn’s plan after scrutiny over costs linked to the rights offering and objections from an official equity committee representing shareholders, which has said the proposal is unfair. Los Angeles-based Breitburn is one of more than 100 energy companies that filed for chapter 11 bankruptcy after oil prices crashed in 2015. Read more.
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