January 25, 2017 Comments (0) Blog

Forbes Energy Services Files for Chapter 11

Cypress Income Fund VIII
(Last Updated On: January 25, 2017)

 

Forbes Energy Services Investment Losses

Have you suffered investment losses in Forbes Energy Services, LTD? If so, The White Law Group may be able to help you. It may be possible to recover your losses by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

Forbes Energy Services Ltd. is an independent oilfield services contractor that provides a broad range of drilling-related and production-related services to oil and natural gas companies, in Texas and Pennsylvania, according to their website.

Forbes Energy Services filed for Chapter 11 bankruptcy protection this week in the southern district of Texas-Corpus Christi. The oilfield services contractor said it has plenty of liquidity to support its business during the reorganization, which provides for a facility of $50 million to be funded by certain bondholders to ensure working capital.

The stock, which traded on the OTC Pink Sheets, had dropped close to 58% over the past three months. Oil and gas exploration and production companies such as Forbes Energy Services, have scaled back drilling and more than 200 energy-related firms have filed for bankruptcy since oil prices crashed about two years ago.

Unsuitable investment?

A risk inherent in investing in Forbes Energy Services is the general risk that comes with the energy market – a market that has seen enormous losses over the last few years.

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 Forbes Energy Services 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.