Have you suffered losses investing in Cubic Energy, Inc.? If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.
Cubic Energy Inc., based in Dallas, Texas, filed for bankruptcy protection on December 11, 2015 after reaching a deal with its lenders to hand over control of the company.
Cubic drills for oil and natural gas in Texas and Louisiana, and said in the chapter 11 filing in U.S. Bankruptcy Court in Wilmington, Del., that it has agreed to give control of the company to Wells Fargo Energy Capital Inc. and its secured bondholders, which include funds managed by Anchorage Capital Group LLC.
Sinking oil prices have forced more than three dozen North American oil and gas companies into bankruptcy this year, according to law firm Haynes and Boone LLP. In addition, Cubic was unable to complete well overhauls.
According to reports, the company was looking for a buyer for more than a year but found no takers. The Chapter 11 filing included a “prepackaged bankruptcy plan” having already secured sufficient votes from creditors to win passage of its debt-for-equity swap.
Cubic has $126.4 million in debt, including $29.9 million secured by the Louisiana properties, owed to Wells Fargo. The bank will take control of the Louisiana holdings, while funds managed by Anchorage, Corbin Capital Partners LP and O-CAP Management LP, will own the rest of the assets.Unfortunately for investors, the company’s existing shares will be canceled under the proposed plan.
The White Law Group is investigating the liability brokerage firms may have for recommending Cubic Energy, Inc. Brokerage firms are required to perform adequate due diligence on any investment they recommend and to ensure that all recommendations are suitable for the investor in light of that particular investor’s age, investment experience, net worth, risk tolerance, investment objectives, and income. Firms that fail to perform adequate due diligence or that make unsuitable recommendations can be held responsible for investment losses in a FINRA arbitration claim.
If you suffered losses in Cubic Energy, Inc. and would like to discuss your litigation options, please call the securities attorneys of The White Law Group at (888) 637-5510 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors in FINRA arbitration claims throughout the country. For more information on the firm, visit https://www.whitesecuritieslaw.com.