December 12, 2014 Comments (0) Blog, Securities Fraud

Recovery of Sabine Oil & Gas LLC (f/k/a NFR Energy LLC) 9.75% 2/15/2017 bond losses

(Last Updated On: January 6, 2016)

Have you suffered losses in Sabine Oil & Gas LLC (f/k/a NFR Energy LLC) 9.75% 2/15/2017 bonds? The White Law Group may be able to help you recover your losses through a FINRA arbitration claim against the brokerage firm that recommended the bonds to you.

The White Law Group is investigating the liability that brokerage firms may have for unsuitably recommending high-yield, high risk oil and gas bonds like the Sabine Oil & Gas LLC (f/k/a NFR Energy LLC) 9.75% 2/15/2017 bond.

Sabine Oil & Gas LLC, previously known as NFR Energy LLC, is a privately held exploration and production company whose operations are focused in the Eagle Ford Shale, the Granite Wash, and the Cotton Valley Sand and Haynesville Shale in East Texas. The company issued debt to raise capital for its ventures, including the Sabine Oil & Gas LLC 9.75% 2/15/2017 bonds.  As of this writing, Sabine Oil & Gas LLC 9.75% 2/15/2017 bonds, CUSIP 62910TAB1 are trading at $70.613.  The issue is rated Caa2/CCC+/— by Moody’s and Standard & Poor’s.

High-yield bonds—also called non-investment-grade bonds, speculative-grade bonds, or junk bonds—are bonds that are rated below investment grade, typically ‘BB’ or lower by Standard & Poor’s and ‘Ba’ or lower by Moody’s. They pay high yields to bondholders because the borrowers credit ratings are less than pristine, making it difficult for them to acquire capital at an inexpensive cost. Junk bonds carry an above average risk that the issuer will default on the bond. The increased risk makes them arguably unsuitable for many investors.

This risk has come in to focus recently as oil prices have plummeted, causing the risk of default of the Sabine Oil & Gas LLC 9.75% 2/15/2017 bonds to rise.

Brokerage-firms and investment adviser have a responsibility to make investment recommendations that are suitable for their clients. Many factors involving the client’s particular investment situation, which include net worth, investment objectives, income, and investment experience, should be taken into consideration. Brokerage firms or advisors who sell junk bonds to unsuitable investors or fail to adequately disclose the risks of the investments can be held accountable for losses suffered through a FINRA arbitration claim.

If you have concerns regarding your investment in Sabine Oil & Gas LLC 9.75% 2/15/2017 bonds or a different oil and gas bond and would like to speak with a securities attorney about your litigation options, please call The White Law Group at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group visit www.whitesecuritieslaw.com.

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