July 20, 2016 Comments (0) Current Investigations

Investor Alert: Murray Energy Corp.

(Last Updated On: March 31, 2017)

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

One of the largest private coal miners in US, Murray Energy, is said to be in discussions with banking groups to amend the terms of its credit agreements and avert potential bankruptcy. Reuters reported that the company is in talks with banks such as Deutsche Bank and Goldman Sachs to seek relief from creditors.

The company’s debt stands at about $3 billion and it has to immediately pay two major debts to stay in business. The talks are aimed at amending a rule in the credit agreements that relates to the amount of debt, which Murray owes as a function of its profits.

Murray issued $1.3 billion in bonds last year to help finance its acquisition of a stake in Foresight Energy LP , a coal miner based in Missouri. Foresight is working on an out-of-court debt restructuring deal, according to a regulatory filing in May. For more information on Foresight Energy, click here.

Specifically, The White Law Group is investigating potential claims involving the following Murray Energy Corp offerings:

Murray Energy  9.5% 12/05/20 bonds

Murray energy 11.250% 04/15/21 bonds

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 Murray Energy bonds and would like 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 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.