April 30, 2016 Comments (0) Blog

Investor Alert: Pacific Exploration & Production Bonds

(Last Updated On: August 30, 2016)

Have you suffered losses investing in Pacific Exploration & Production Bonds? If so, the attorneys at The White Law Group may be able to help you recover your losses with a FINRA arbitration claim against the brokerage firm that recommended the bonds to you.

Oil and gas producer Pacific Exploration & Production Corp. filed for bankruptcy protection April 27 in Canada to execute a proposed transaction with private equity firm The Catalyst Group in order to reduce its debt by $5 billion, the company said.

The filing is part of a plan to convert Pacific Exploration debt for equity in a reorganized business. Along with the filing in Canada, Pacific Energy is seeking protection from creditors in the U.S. and Colombia. Pacific Energy is the latest in a string of North American oil and gas companies to file for bankruptcy in 2016.

Pacific Energy shares are publicly traded on the Toronto Stock Exchange and the company has operations in Colombia, Peru, Brazil, Belize, Mexico and Guatemala. The company said the court proceedings are not expected to interrupt the operation of its various subsidiaries.

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.

If you have lost money investing in the following Pacific Exploration & Production offerings, then The White Law Group may be able to help:

Pacific Exploration, 5.375% 01-26-2019

Pacific Exploration 5.625% 01-19-2025

Pacific Exploration 8.75% 11-10-2016

Pacific Exploration 7.25%  12-12-2021

Brokerage-firms and investment adviser are required to make investment recommendations that are suitable for their clients in light of their clients particular investment situation – net worth, investment objectives, income, and investment experience. Brokerage firms or advisors who sell junk bonds to unsuitable investors or fail to adequately disclose the risks of the investments can be held accountable for losses suffered through a FINRA arbitration claim.

If you have concerns regarding your investment in Pacific Exploration & Production bonds and would like to speak with a securities attorney about your litigation options, please call The White Law Group at (888) 637-5510 for a free consultation.

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

To learn more about The White Law Group visit www.whitesecuritieslaw.com.