The prolonged decrease in oil and gas prices has many company’s scrambling to manage their debt.
According to The Motley Fool, LINN Energy has maxed out its credit facility, borrowing approximately $919 million. To help them explore strategic alternatives to manage the company’s debt, LINN Energy recently announced they hired advisers to help evaluate their options.
Motley Fool reports that LINN Energy has spent the past your working on improving their financing position and were able to lop off a net $1.8 billion in debt. However, it appears that this may not have been enough to put them on the right track.
It is unclear if LINN Energy will seek bankruptcy protection to restructure their debt. The Motley Fool speculates that LINN Energy may begin selling the company off piece-by-piece and could possibly abandon the upstream Master Limited Partnership format.
The White Law Group is investigating the liability that brokerage firms and financial advisors may have for recommending high risk MLPs, like LINN Energy, to their clients. To learn more about LINN Energy MLP’s visit http://www.whitesecuritieslaw.com/2015/12/11/recovery-of-linn-energy-upstream-master-limited-partnership-mlp-investment-losses-2/.
Brokerage firms that recommend energy investments are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of their client’s age, net worth, investment experience, risk tolerance, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.
If you suffered losses investing in LINN Energy and would like to discuss your litigation options, please call The White Law Group at (312) 238-9650 for a free consultation.
The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida. The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.