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Breitburn Energy Partners LP Message Board

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  • rlbeard6734 rlbeard6734 Apr 22, 2009 9:47 PM Flag

    KWK pain

    they make money from suit because for every two dollars they get they pay one. Board seats are power and with power you can get a CEO elected and your stock bought out or anything else you want. The seats on board are probably worth more than the money they are seeking. By cutting the dividend because of the loan requirements, BBEP does the following 1) avoid legal problems for doing it because of the lawsuit 2) cut funds to KWK which is hurting and may have to sell assets to keep afloat, 3) keep from raising their interest rates more than is financially feasible and that also cut into any distributions, 4)possibly improving odds of getting KWK to settle or work a deal and drop suit. I personally think it was not only a great business decision for the company but a brilliant maneuver against KWK as a side benefit. I bought a bunch at 5.56 the day of announcement, sold half of what I bought then or 1/4 of total holdings to lock in profit and lower my cost although I am already regretting it but was too loaded and on margin. It did better than I had hoped as I thought 6.20 would be high 2nd day and now it is even higher today, I still believe by mid May it will be at mid 7s. GLTA

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