Breitburn Energy Partners has received a $1.8 billion full-cash offer from Lime Rock Resources.
A four-day bankruptcy confirmation hearing in U.S. Bankruptcy Court in Manhattan ended last month between Breitburn and its shareholders, reported Reuters.
Parties were awaiting a ruling from the bankruptcy judge overseeing the case when BBEP revealed in a letter to the judge that it had received the bid from Lime Rock.
The official committee of equity holders said they believed Breitburn was worth $3.8 billion following a spike in oil prices since the company filed for bankruptcy in 2016. They argued in court that Breitburn had low-balled its valuation in order to favor creditors who stood to gain control over its assets.
Breitburn’s reorganization plan envisioned splitting its assets into two companies, one created through a $775 million rights offering and the other through a debt-for-equity swap.
Following news of the Lime Rock bid, the equity committee asked the court to reopen the record to submit the new evidence and called for a hearing on Feb. 13.
