April 15, 2016 Comments (0) Blog, Current Investigations

Update: Peabody Energy Corporation

(Last Updated On: April 6, 2017)

Have you suffered losses investing in Peabody Energy Corp? If so, the attorneys at The White Law Group may be able to help.

Peabody Energy Corporation is the world’s largest private sector coal company with 28 coal mining operations in the US and Australia and over 8 billion tons of proven and probable reserves. The company issued debt to raise capital for its ventures, including the Peabody Energy Corporation 4.75% 12/15/2066 bonds.

The company based in St. Louis, declared bankruptcy April 14th, marking the end of an era for big publicly traded companies that have fueled American industry for more than a century.

The coal sector has lost over $30 billion in stock-market value since 2010, and has shed 31,000 jobs since 2009, according to the Mine Safety and Health Administration.

Specifically, The White Law Group is investigating the following Peabody Energy investments:

Peabody Energy Corp 7.875% 11/1/26
Peabody Energy 10% 03/15/22
Peabody Energy 6.25% 01/15/21
Peabody Energy 6% 11/15/18
Peabody Energy 6.5% 09/15/20
Peabody Energy 4.75% 12/15/66

High-yield bonds—also called non-investment-grade bonds, speculative-grade bonds, or junk bonds—are bonds that are rated below investment grade, typically ‘BB’ or lower by Standard & Poor’s and ‘Ba’ or lower by Moody’s. They pay high yields to bondholders because the borrowers credit ratings are less than pristine, making it difficult for them to acquire capital at an inexpensive cost. Junk bonds carry an above average risk that the issuer will default on the bond. The increased risk makes them arguably unsuitable for many investors.

Brokerage firms that sell such products 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 the client’s age, net worth, investment experience, 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 Peabody Energy bonds and would like a free consultation with a securities attorney, please call The White Law Group at 888-637-5510.

For more information into The White Law Group’s investigation of Peabody Energy bonds, click here.

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.

For more information on The White Law Group, visit http://www.whitesecuritieslaw.com.