July 5, 2016 Comments (0) Current Investigations

Update: Foresight Energy LP MLP Launches Cash Tender & Exchange Offer

(Last Updated On: October 12, 2016)

Have you suffered losses investing in Foresight Energy LP MLP? If so, the securities attorneys of The White Law Group may be able to help.

Foresight Energy LP is a producer and marketer of thermal coal with over 3 billion tons of coal reserves in the Illinois Basin. The Company markets and sells its coal to a diverse customer base including electric utility and industrial companies in the eastern United States, as well as the seaborne thermal coal market.

Foresight Energy LP operates as a master limited partnership.  A Master Limited Partnership (MLP) is a type of limited partnership that is publicly traded. MLP’s receive the same tax benefits of a limited partnership combined with the liquidity of a publicly traded security. In order to be classified as an MLP the partnership must receive 90% of its cash flow from a “qualifying source” – such as real estate, natural resources or commodities.

MLP’s are extremely complex and risky. They are only suitable for wealthy, sophisticated retail investors or institutional investors.

Foresight found itself in a bad way last December after the Delaware Chancery Court ruled that Murray Energy’s revised “partnership” deal demonstrated “de facto” control.  This change would allegedly require Foresight to repay the $600 million bond issue at 101%. With long-term debt of $1.5 billion and a cash position of $16.2 million as of close of Q1, Foresight does not have sufficient liquidity to repay the debt in the event of acceleration, reports say.

According to the press release on August 1st, Foresight Energy launched a cash tender and exchange offer for a proposed restructuring to avoid Chapter 11 of U.S Bankruptcy Code.

The White Law Group is investigating the liability that brokerage firms may have for recommending Foresight Energy to their clients. 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.

For a free consultation with a securities attorney, please call 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.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit http://www.whitesecuritieslaw.com.