According to various reports, Quicksilver Resources recently filed for Chapter 11 bankruptcy protection. In regulatory filings, the Quicksilver Resources apparently disclosed that it had $2.35 billion in debt and $1.2 billion in assets. Management said it would face a “potential liquidity shortfall” in the first quarter of 2016, for reasons including its mountain of debt and the oil crash, according to the regulatory filing.
The oil and gas company based in Texas does not expect its US or Canada operations to stop.
The company’s problems started even before oil prices began to slide last year. Last September, the company tried to sell off all its assets, but it was unable to find any buyers. Moody’s cut its debt rating to junk.
Unlike Chapter 7 bankruptcy, in which a company must immediately sell all its assets to pay creditors, a Chapter 11 filing gives Quicksilver the chance to restructure its debt. It is unclear how this will impact investors, including holders of Quicksilver Resources bonds, but Quicksilver shares plummeted nearly 43% on Wednesday to less than 3 cents a share.
The White Law Group is investigating whether brokerage firms improperly recommending investments in Quicksilver’s junk bonds. Brokerage firms are required to perform due diligence on any investment they recommend and to ensure that all recommendations are appropriate in light of the client’s age, investment experience, net worth, income, and investment objectives. If a brokerage firm fails to perform due diligence or makes unsuitable investment recommendations, the firm can be held responsible for the losses in a FINRA arbitration.
Upon information and belief, the bonds reportedly sold by Quicksilver Resources are the following:
Quicksilver Resources Second Lien Term Loan
Quicksilver Resources Second Lien Notes due 2019
Quicksilver Resources Senior Notes due 2015 8.25%
Quicksilver Resources Senior Notes due 2016 11.75%
Quicksilver Resources Senior Notes due 2019 9.125%
Quicksilver Resources Senior Notes due 2021 11%
Quicksilver Resources Senior Subordinates Notes due 2016 7.125%
If you suffered losses investing in Quicksilver Resources bonds and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at 312/238-9650.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Florida and Vero Beach, Florida. For more information on the firm, visit http://www.whitesecuritieslaw.com.