January 7, 2016 Comments (0) Blog

Update: American Eagle Energy

(Last Updated On: March 31, 2017)

Have you suffered losses investing in American Eagle Energy 11% 1 sep 2019 bonds? If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.

American Eagle Energy is an independent oil exploration and production operator based in Denver Colorado. The company has a focus on acquiring acreage and developing wells in Bakken and Three Forks shale oil formations of  North Dakota and Montana.

American Eagle Energy Corp. filed for chapter 11 bankruptcy protection in May 2015, more than two months after missing an interest payment to bondholders, and only seven months after raising $175 million in a junk-bond offering.

In September, the company had an offer from group of its bondholders for $52.5 million, however, the group cut its offer ahead of the auction from $70 million, because of weakness in the oil patch.

American Eagle has been under pressure from bondholders for months ever since it announced the suspension of drilling operations. Two months after that announcement, American Eagle told investors that it missed the deadline for making a $10 million interest payment on $175 million worth of bonds, kicking off a 30-day grace period under the bond agreement.

The company listed $215 million worth of liabilities and nearly $212 million in assets in its bankruptcy petition.

Unfortunately, many investors were not made adequately aware of the risks associated with energy investments. Oil and gas investments are generally speculative and very high risk ventures. They are arguable better suited for sophisticated and institutional investors that can afford total loss of their investment. Even bonds in the oil and gas industry, which many investors think of as “safe,” are not without risk.

As such, the White Law Group continues  investigating the liability some brokers may have for recommending American Eagle Energy investments. For more information on their investigation, click here.

Before recommending an investment, your broker has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor. Unfortunately, brokers sometimes fail to perform the necessary due diligence prior to recommending them to their clients.

To determine whether you may be able to recover investment losses incurred in American Eagle Energy please contact The White Law Group at (888) 637-5510.

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