Breitburn Energy Partners

Following the appointment of the equity committee, Carl Marks Advisors was retained to serve as its exclusive investment banker and advise throughout the financial restructuring.

Engagement highlights include:

• Review of the 13-week cash flow, monthly operating reports, and liquidity.
• Negotiate amendments to the DIP facility to ensure the company has enough runway to negotiate a plan of reorganization.
• Vet the debtors’ business plan, capital requirements, drilling perspectives, and Permian acreage development initiative.
• Develop and socialize a restructuring term sheet that outlined the equity committee’s financial ask that included NewCo equity shares, a warrant package, rights offering participation, and information rights, among others.
• Assist industry experts in formulating a valuation for a contested confirmation hearing.
• Work with counsel to evaluate and size a potential cancelation of debt income liability for the equity holders.

Carl Marks successfully helped negotiate a mitigation of the tax liability to equity holders as part of an overall restructuring solution – a key win for our constituents.