Breitburn Energy Shareholders Fight Continues
Breitburn Energy Partners LP (NASDAQ: BBEP) is an independent oil and gas master limited partnership (MLP) focused on the acquisition, exploitation, development and production of oil and gas properties in the United States. Breitburn was one of many oil companies that filed Chapter 11 bankruptcy protection after oil prices took a dive to $30 a barrel in 2014.
On Thursday at a hearing in US Bankruptcy Court, Breitburn Energy shareholders’ rep reportedly claimed the company’s valuation of $1.6 billion was too low.
The equity committee estimates Breitburn Energy is worth $3.8 billion, a valuation that would allow some recovery on their investment and eliminate a tax charge.
According to the reorganization plan, Breitburn’s oil and gas assets will be split into two new companies owned by Creditors with $3 Billion in claims. Breitburn’s lawyer reportedly urged Judge Stuart Bernstein to approve the reorganization plan and close the 18 month long proceedings.
Is an MLP a Suitable investment for you?
A Master Limited Partnership (or MLP) such as Breitburn Energy Partners, is a type of limited partnership that is publicly traded. MLP’s receive the same tax benefits of a limited partnership combined with the liquidity of a publicly traded securities. But investors in such companies can lose more than 100 percent of their investment if the company does not make a profit.
The White Law Group continues to investigate potential claims involving broker dealers who may have unsuitably recommended the high risk MLP Breitburn Energy Partners to investors.
Brokerage firms are required to perform adequate due diligence to evaluate whether the investments they recommend are suitable in light of the client’s age, net worth, risk tolerance, investment experience, and investment objectives.
Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.
If you suffered losses investing in Breitburn Energy Partners at the recommendation of your financial advisor you may be able to recover your losses. For a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.