February 7, 2017 Comments (0) Current Investigations

Vanguard Natural Resources Files for Chapter 11

Noble Royalty Access Fund GP
(Last Updated On: February 7, 2017)

Investment Losses in Vanguard Natural Resources?

Have you suffered losses investing in Vanguard Natural Resources (VNR)? If so, The White Law Group may be able to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.

The White Law Group continues to investigate whether some brokerage firms may have improperly recommended high-risk MLPs like Vanguard Natural Resources to clients. Unfortunately, many investors were not made adequately aware of the risks associated with energy investments like Vanguard Natural Resources.

Vanguard Natural Resources is a publicly traded limited liability company focused on the acquisition, production and development of mature, long-lived oil and natural gas properties in the United States. The Company’s assets consist primarily of producing and non-producing oil and natural gas reserves.

Vanguard has been struggling since crude oil prices crashed in 2014, bringing the Energy Sector down with it. Now they filing for Chapter 11 bankruptcy protection this week.

According to a press release, the restructuring is expected to reduce Vanguard’s debt by $708 million. Vanguard has entered into a restructuring agreement with certain consenting holders of the company’s senior notes due 2020, senior notes due 2019, and senior secured second lien notes due 2023.

Subject to court approval, the company plans to use this financing, along with its cash from operations, to continue the company’s business. Vanguard has obtained a $50 million debtor-in-possession financing facility underwritten by Citibank, JPMorgan Securities LLC and Wells Fargo Bank.

In October 2015, Vanguard closed on acquisitions of two other Houston-based energy companies within one week. One deal was valued at $539 million deal, including debt, when it was announced in April 2015, and the other was valued at $614 million, including net debt, when it was announced in May 2015.

Vanguard agreed in March to sell assets in Oklahoma for $280 million to entities managed by Dallas-based Titanium Exploration Partners LLC, to reduce borrowing under its reserve-based credit facility.

Recovery of Investment Losses

Before recommending an investment, your broker has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor.

To the extent that some brokerage firm failed to perform adequate due diligence or make unsuitable investment recommendations, the firm may be held liable for any resulting losses in a FINRA arbitration claim.

To determine whether you may be able to recover investment losses incurred in Vanguard Natural Resources or another energy 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, visitwww.WhiteSecuritiesLaw.com.