UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
______________________________
FORM
8-K
_________________________
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): March 12, 2010 (March 11,
2010)
EAGLE ROCK ENERGY PARTNERS,
L.P.
(Exact
name of Registrant as specified in its charter)
Delaware
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001-33016
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68-0629883
|
(State
or other jurisdiction of incorporation or organization)
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Commission
File Number
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(I.R.S.
Employer Identification No.)
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1415
Louisiana Street, Suite 2700
Houston,
Texas 77060
(Address
of principal executive offices, including zip code)
(281)
408-1200
(Registrant’s
telephone number, including area code)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
þ Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 8.01 Other
Events.
On
February 9, 2010, a purported class action and derivative lawsuit, Allan
Roffe v. Eagle Rock Energy Partners, L.P. et al., Civil Action No.
5258-VCL, was filed by a public unitholder of Eagle Rock Energy Partners, L.P.
(the “Partnership”) in the Court of Chancery of the State of Delaware naming the
Partnership, Eagle Rock Energy GP, L.P., the general partner of the Partnership
(the “General Partner”), certain affiliates of the General Partner, including
Eagle Rock Energy G&P, LLC, the general partner of the General Partner
(“G&P LLC”), and each member of the board of directors of G&P LLC as
defendants. The complaint alleged, among other things, that (i) the
previously announced proposed recapitalization transactions are unfair to the
Partnership’s public unitholders, (ii) the preliminary proxy statement filed on
January 14, 2010 in connection with the proposed recapitalization transactions
contains material misstatements and omissions and (iii) that the defendants
breached their fiduciary duties to the Partnership’s public unitiholders in
connection with the proposed recapitalization transactions.
The
Partnership believes that the Roffe
action is entirely without merit and that the Partnership and the other
defendants have valid defenses to all claims. Nevertheless, in an effort to
minimize the further cost, expense, burden and distraction of any litigation
relating to the action, the parties to the Roffe
action after arms-length negotiations entered into a Memorandum of
Understanding regarding the terms of a potential settlement of the action on
March 11, 2010. Pursuant to the Memorandum of Understanding, the Partnership has
agreed to include in its proxy statement certain supplemental disclosures
suggested by plaintiff and has included them in a preliminary proxy statement
filed with the U.S. Securities and Exchange Commission (“SEC”) today. The
settlement contemplated by the Memorandum of Understanding is subject to, among
other things: (i) plaintiff being satisfied after conducting confirmatory
discovery that the settlement is in the best interest of the class of the
Partnership’s common unitholders; (ii) negotiation and execution of definitive
settlement documentation; (iii) the Partnership obtaining the requisite approval
of its common unitholders of the proposed recapitalization transactions; (iv)
the Partnership completing at least one of several specified portions of the
proposed recapitalization transactions; and (v) approval of the settlement by
the Delaware Court of Chancery. If the settlement is consummated, it, among
other things, would resolve the allegations by the plaintiff against the
defendants in connection with the proposed recapitalization transactions and
would provide a release and settlement by a proposed class of EROC common
unitholders during the period September 17, 2009 through and including the date
of the closing of the transactions of all claims against the defendants, and
each of the defendants’ affiliates and agents, and others in connection with the
proposed recapitalization transactions. The parties have not yet reached an
agreement regarding the amount of plaintiff’s attorney’s fees and costs that the
Partnership would agree not to oppose, and are still in negotiations concerning
that item. Any amount of fees and costs will be subject to court approval. If
the parties are unable to reach an agreement on the amount of plaintiff’s
attorney’s fees and costs, the plaintiff will have the right to make an
application to the Court for an award of fees and costs, and defendants will
have the right to contest such application. The Memorandum of Understanding
provides that the Partnership will pay on behalf of the individual defendants
any award of fees and costs by the Court. There can be no assurance as to when
or whether the conditions to a settlement will be satisfied or the settlement
will be consummated. In the event that the settlement is not consummated, the
Partnership intends to vigorously defend against the action.
Important
Information Regarding Proposed Restructuring Transactions will be filed with the
SEC
In
connection with the proposed restructuring transactions described in the
Partnership’s Current Report on Form 10-K filed with the SEC on January 12,
2010, the Partnership has filed preliminary proxy statements and will file
other documents with the SEC. INVESTORS AND SECURITY HOLDERS ARE ADVISED TO READ
THE DEFINITIVE PROXY STATEMENT WHEN IT BECOMES AVAILABLE BECAUSE IT WILL CONTAIN
IMPORTANT INFORMATION ABOUT THE PARTNERSHIP. Investors and security holders may
obtain copies of the preliminary proxy statements, the definitive proxy
statement and other documents that the Partnership files with the SEC (when they
are available) free of charge at the SEC’s web site at http://www.sec.gov. The
preliminary proxy statements, the definitive proxy statement and other relevant
documents may also be obtained (when available) free of charge on the
Partnership’s web site at http://www.eaglerockenergy.com
or by directing a request to Eagle Rock Energy Partners, L.P., P.O. Box 2968,
Houston, Texas 77252-2968, Attention: Investor Relations.
The
Partnership and its directors, executive officers and other members of its
management and employees may be deemed participants in the solicitation of
proxies from the unitholders of the Partnership in connection with the proposed
transactions. Information regarding the special interests of persons who may be
deemed to be such participants in the proposed transactions will be included in
the proxy statement when it becomes available. Additional information regarding
the directors and executive officers of the Partnership is also included in the
Partnership’s Annual Report on Form 10-K for the year ended December 31, 2009
and subsequent statements of changes in beneficial ownership on file with the
SEC. These documents are available free of charge at the SEC’s web site at
http://www.sec.gov and from Investor Relations at Eagle Rock Energy Partners,
L.P. as described above.
The
statements included in this Current Report on Form 8-K regarding the settlement
negotiations and terms, are forward-looking statements. These statements involve
risks and uncertainties, including, but not limited to, actions by regulatory
authorities, market conditions, the Partnership’s financial results and
performance, satisfaction of closing conditions, actions by third parties and
other factors detailed in risk factors and elsewhere in the Partnership’s Annual
Report on Form 10-K for the year ended December 31, 2009, and any other
subsequent filings with the SEC. Should one or more of these risks or
uncertainties materialize (or the consequences of such a development worsen), or
should underlying assumptions prove incorrect, actual outcomes may vary
materially from those forecasted or expected. The Partnership disclaims any
intention or obligation to update publicly or revise such statements, whether as
a result of new information, future events or otherwise.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
EAGLE
ROCK ENERGY PARTNERS, L.P.
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By:
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Eagle
Rock Energy GP, L.P.,
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its
general partner
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By:
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Eagle
Rock Energy G&P, LLC,
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its
general partner
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Date:
March 12, 2010
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By:
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/s/
Charles C. Boettcher
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Charles
C. Boettcher
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Senior
Vice President and General Counsel
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