"This is the largest MLP [master limited partnership] bankruptcy in U.S. history," said Douglas Moga, spokesperson for a group of investors who are challenging the legitimacy of the plan. "And the shareholders, some who are losing their retirement savings, are not being given a voice."
The equity holders argue that impairment charges of more than $7 billion were taken by the company when oil and natural gas prices were lower than today's current market prices and need to be revalued. They believe in revaluing the assets at current levels would result in shareholder's equity of more than $4.7 billion and that this equity should be allocated to shareholders in the Plan of Reorganization. The shareholders are calling for the official equity holders committee to be set up so their independent experts can provide the valuation.
"Allowing third-party experts to determine the true value of the shareholder equity will only help legitimize the plan," Moga added. "We have been completely shut out of the process and have no idea how our money is being used."
Moga added that anyone interested in helping the shareholders can reply via the contact information at the top of the release.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/linn-energy-shareholders-object-to-reorganization-plan-believe-shareholders-equity-being-understated-by-47-billion-300395166.html
SOURCE Linn Energy Shareholder Group