Have you suffered losses investing in Milagro Oil & Gas? 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, Milagro Oil & Gas is an independent oil and natural gas company based in Houston, Texas. The company primarily engages in exploitation, development and production activities in the Gulf Coast region.
On October 8th, Delaware bankruptcy judge approved Milagro Oil & Gas Inc.’s Chapter 11 plan, which is centered on a $217 million deal shipping its assets to White Oak Resources VI LLC.
The plan, approved by U.S. Bankruptcy Judge Kevin Gross, considers the exchange of Milagro’s oil and gas assets to White Oak in exchange for $120 million in cash and $97 million in equity. Like other U.S. energy producers, Milagro entered bankruptcy earlier in the year amid persistently low oil prices.
Proceeds from the White Oak transaction will go toward repaying the Gulf Coast oil and gas producer’s $15 million bankruptcy loan and senior lenders in full, while giving second lien noteholders a share of equity in the reorganized company. Approval of the plan also clears Milagro’s path out of bankruptcy.
Unfortunately, many investors were not made adequately aware of the risks associated with energy investments. Oil and gas investments are generally speculative and can be very high risk ventures. They are arguably 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.
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 if the investment is suitable for the investor. Brokers that fail to perform the necessary due diligence prior to recommending them to clients could be liable for investment losses.
For more information on The White Law Group’s investigation of Milagro Oil and Gas, click here.
To determine whether you may be able to recover investment losses incurred in Milagro Oil & Gas 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. Visit our homepage to learn more about the firm.