Breitburn Energy gets approval for funds to stay in business

• Breitburn Energy Partners (BBEP) wins approval to spend $75M of its financing to stay in business while it restructures in bankruptcy.
• The chapter 11 loan from senior lenders could run as high as $150M if approved in final form at a hearing set for July; the interim approval gives BBEP access to funds to continue normal operations while it engages in restructuring talks.
• BBEP filed for bankruptcy protection without a restructuring agreement in place; having assets outside the reach of banks distinguishes BBEP from most of the energy companies in bankruptcy, and offers hope that unsecured creditors will be able to recover a good amount of their money in the bankruptcy proceeding, says a lawyer for an ad hoc group of bondholders.