Breitburn Energy Partners Successfully Completes Chapter 11 Reorganization: Emerges as Newly Formed Maverick Natural Resources, LLC, Controlled by Funds and Accounts Managed by EIG Global Energy Partners.
April 12, 2018 06:56 PM Eastern Daylight Time
LOS ANGELES--(BUSINESS WIRE)--Maverick Natural Resources, LLC (“Maverick”), announced today that it began operating on April 6, 2018, after it emerged from Chapter 11 as the successor to Breitburn Energy Partners LP (“Breitburn”). Maverick is majority-owned and controlled by funds and accounts managed by EIG Global Energy Partners (“EIG”).
As a result of the restructuring process, Maverick has debt of approximately $105 million, which is substantially lower than Breitburn’s $2.96 billion debt balance prior to initiating the restructuring process. Maverick has approximately $295 million of additional borrowing capacity under a new bank credit facility. Maverick’s balance sheet provides it with significant financial flexibility and positions the organization for long-term success.
Clayton Taylor, Managing Director of EIG, said: “We are pleased to close this chapter and focus on generating value for the Maverick platform. Maverick will emerge with low leverage, a simple balance sheet, and sufficient liquidity to remain adaptive to the ever-changing market conditions. Following a judicious review of the asset portfolio and cost structure, we believe Maverick is well-positioned to capitalize on cost reduction initiatives, to deploy capital to high growth prospects and to potentially build the platform through strategic acquisitions.”
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