Breitburn Energy Partners is an independent oil and gas master limited partnership (NYSE:MLP) focused on the acquisition, exploitation, development and production of oil and gas properties in the United States, according to its website.
Breitburn Energy Partners filed for chapter 11 bankruptcy in May 2016. Distributions to common shareholders were cut, and then suspended last year.
Judge Stuart Bernstein of the U.S. Bankruptcy Court in New York signed off on the plan over the protests of the U.S. Trustee, who has been bombarded by shareholders complaining that Breitburn's bankruptcy threatens substantial portions of their life savings.
Investors have sustained major losses during the distress in the energy sector as diving prices cut into profits. Breitburn's shareholders may have more to lose than many, however, due to the company's master limited partnership status. An MLP is a limited partnership which trades publicly on an exchange and thus, provides not only the tax benefits of a limited partnership, but also the liquidity of publicly traded securities.
In addition to watching their entire investment being erased, Breitburn's shareholders could be hit with a big tax bill for "cancellation of debt income," according to court papers.
The White Law Group has filed a number of claims involving high risk MLP investments like Breitburn Energy Partners. The firm continues to investigate potential claims against the broker dealers that sold these high risk investments onto unsuspecting investors.
Broker dealers are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor. Recommendations should be appropriate in light of the investor's age, risk tolerance, net worth, and investment experience.
Broker dealers that fail to adequately disclose risks or make unsuitable investment recommendations can be held liable for investment losses in a FINRA arbitration claim.
For more information on The White Law Group's investigation see Investor Alert: Breitburn Energy Partners Files Bankruptcy.
If you have suffered losses investing in Breitburn Energy Partners and would like to speak to a securities attorney about the potential to recover your investment losses, please call The White Law Group at 1-888-637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida. To learn more about The White Law Group visit www.whitesecuritieslaw.com.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.