Have you suffered investment losses in Bonanza Creek Energy? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.
Denver-based Bonanza Creek Energy filed for Chapter 11 last week, joining a long list of energy companies that have been hit hard by low oil prices. Global oil prices have dropped more than 50 percent since mid-2014, slowing cash flows of oil producers and hurting their ability to meet debt and interest payments.
Reportedly, the prepackaged plan is intended to de-leverage its transactions by equitizing about $867 million of its existing unsecured bond obligations.
Also under the plan, the company’s existing shareholders will receive 4.5 percent of the equity of a reorganized Bonanza Creek and three-year warrants to acquire up to 7.5 percent of equity.
The White Law Group continues to investigate claims involving Bonanza Creek and whether brokerage firms improperly recommended the investment.
Broker dealers are required to perform adequate due diligence on all investment recommendations to ensure that each investment is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.
If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Bonanza Creek or another oil and gas investment, please contact The White Law Group at 1-888-637-5510 for a free consultation.
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 firm, visit www.WhiteSecuritiesLaw.com.