Breitburn Energy Partners LP yesterday reached an agreement with holdout creditors over its $3 billion bankruptcy exit plan and hopes to win court confirmation as soon as this month for a reorganization under new ownership, Reuters reported. On Friday, U.S. Bankruptcy Judge Stuart Bernstein rejected Breitburn’s plan to split into two separate creditor-owned companies, saying certain terms discriminated against retail bondholders, who had voted against the plan. During a status conference yesterday in U.S. Bankruptcy Court in New York on Monday, Breitburn lawyer Ray Schrock of Weil, Gotshal & Manges LLP said that individual bondholders will be offered the same cash recovery as institutional bondholders, addressing Bernstein’s concerns. The deal will cost Breitburn “a couple of million dollars,” he said, a small amount considering that the $3 billion bankruptcy of the oil-and-gas producer has lingered in court for two years. Breitburn filed for chapter 11 protection in 2016 after oil prices had slumped to below $30 a barrel from more than $100 in 2014, triggering a wave of bankruptcies across the energy industry.
