Breitburn can elect to make the interest payments due under the Notes at
any time during the grace period. However, if Breitburn decides not to
make such interest payments by the end of the grace period, such failure
constitutes, with respect to each series of Notes, an "Event of Default"
and also results in a cross-default under Breitburn's revolving credit
facility and its 9.25% Senior Secured Second Lien Notes due
Breitburn has elected to utilize the grace period for the Notes as part
of its process to explore strategic alternatives to strengthen its
balance sheet and maximize the value of Breitburn. Additionally, it has
initiated discussions with its secured debtholders related to
alternatives to improve Breitburn's long-term capital structure.
Breitburn has retained Lazard Frères & Co. LLC as its financial advisor
Cautionary Statement Regarding Forward-Looking Information
This press release contains forward-looking statements relating to
Breitburn's operations that are based on management's current
expectations, estimates and projections about its operations. Words and
phrases such as "believes," "expect," "future," "impact," "guidance,"
"will be," "forecast" and variations of such words and similar
expressions are intended to identify such forward-looking statements.
These statements are not guarantees of future performance and are
subject to certain risks, uncertainties and other factors, some of which
are beyond our control and are difficult to predict. These include risks
relating to Breitburn's financial performance and results, availability
of sufficient cash flow and other sources of liquidity to execute our
business plan, prices and demand for natural gas and oil, increases in
operating costs, uncertainties inherent in estimating our reserves and
production, our ability to replace reserves and efficiently develop our
current reserves, political and regulatory developments relating to
taxes, derivatives and our oil and gas operations, risks relating to our
acquisitions and the factors set forth under the heading "Risk Factors"
incorporated by reference from our Annual Report on Form 10-K filed with
Vice President, Investor Relations & Government Affairs
Investor Relations Manager
News Provided by Acquire Media