Update: ERG Resources
Have you suffered financial losses investing in ERG Resources? 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.
According to their website, ERG Resources, formerly known as Energy Reserves Group, evaluates, acquires, operates, and exploits oil and gas assets with headquarters in Houston, Texas. The companies’ assets have over time included areas on the U.S. Gulf Coast and in California, the Illinois Basin, Texas and Louisiana.
ERG Intermediate Holdings LLC and its affiliates have canceled the 363 sale process and instead, will file a plan of reorganization, the companies said Aug. 12. The companies—including ERG Resources Inc. LLC, ERG Operating Co. LLC, ERG Interests LLC and West Cat Canyon LLC—filed for Chapter 11 bankruptcy protection in the Northern District of Texas on April 30, 2015.
No acceptable bid was received under the bidding and sale procedures approved by the bankruptcy court. Instead, the lenders provided a proposal for a plan of reorganization. They will provide exit financing to maintain, and possibly expand, the companies’ California assets and operations.
Unfortunately for some investors, they where not adequately informed of the risks associated with energy investments. Energy investments are generally speculative and can be very high risk ventures. Even bonds in the oil and gas industry, which many investors think of as “safe,” are not without risk. The White Law Group is investigating the liability that that some brokers may have for making unsuitable recommendation in risky oil and gas investments.
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.
For more information on The White Law Group’s investigation of ERG Resources, click here.
For a free consultation to determine whether you may be able to recover investment losses incurred in ERG Resources 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.