Fallout from Crude Price Crash Pt. 2
Posted: Mon 16 May 2016, 10:29:23
What happens when your assets are junk bought with free money? Another multi-billion dollar bankruptcy. They keep coming.
Breitburn Energy Partners Files for Chapter 11 Bankruptcy
Breitburn Energy Partners Files for Chapter 11 Bankruptcy
Citing the “prolonged decline in commodity prices,” Mr. Washburn said Breitburn’s existing debt is unsustainable. In papers filed in the U.S. Bankruptcy Court in New York, Breitburn reported assets of $4.7 billion and debts of $3.4 billion as of March 31.
About $3 billion of Breitburn’s debts are bank and bond debt, topped by $1.25 billion in loans from lenders led by Wells Fargo Bank, NA. Breitburn is carrying $650 million of senior secured second-lien bonds and $1.1 billion in unsecured bonds.