May 14, 2016 Comments (0) Blog

Recovery of Berry Petroleum 6.75% 11/1/2020 bonds

(Last Updated On: August 29, 2016)

Have you suffered losses in Berry Petroleum  6.75% 11/1/2020 bonds? If so, the securities attorneys of 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.

Berry Petroleum Company is an indirect wholly owned subsidiary of LINN Energy in the industry of crude oil and natural gas exploration and production. The company issued debt to raise capital for its ventures, including the Berry Petroleum 6.75% 11/1/2020 bonds.

Linn Energy LLC and Berry Petroleum filed for chapter 11 bankruptcy May 11th after reaching a deal with lenders to restructure its $8.3 billion debt load and obtain $2.2 billion in fresh financing. As we have discussed in previous posts, dipping oil and gas prices have forced many energy companies to look for ways to restructure their debt. Investors in these partnerships could be facing a hefty tax bill as they are hit with taxes on debt that the partnership eliminates.

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 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 Berry Petroleum 6.75% 11/1/2020 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.