The plunge in oil prices may not come as good news to all, particularly investors in oil and gas companies. According WSJ.com, “WBH Energy LP, and its partners, filed for bankruptcy protection, saying a lender refused to advance more money and citing debt of between $10 million and $50 million..”
According to Law360, “Attorneys for WBH Energy LP and a lender that tipped the Texas drilling company into bankruptcy by threatening the installation of a receiver pledged Wednesday to attempt to resolve a $30 million debt claim and avoid a contested Chapter 11.”
Reports indicate that several U.S. oil and gas producers racked up substantial debt. According to WSJ, borrowing has increased 55% since 2010 and revenues have not been able to keep pace. Some analysts believe that more defaults can be expected.
Oil and gas investments are often speculative and high risk. These types of investments often lack liquidity and are better suited for sophisticated and institutional investors.
If you invested in oil and investment and would like to discuss your litigation options to recover investment losses, please call The White Law Group at 312-238-9650 for a free consultation.
The White Law Group, LLC is a national fraud, securities arbitration, investor protection and securities regulation/compliance law firm with offices in Chicago, Illinois and Vero Beach, Florida.
To learn more about The White Law Group, visit www.whitesecuriteslaw.com.