Lightstream Resources Investment Losses
Have you suffered losses investing in Lightstream Resources? If so, The White Law Group may be able to help.
According to their website, Lightstream Resources, LTD is an oil and gas exploration and production company focused on light oil in the Bakken and Cardium resource plays.
Lightstream Resources Ltd. is seeking bankruptcy protection from its creditors after the oil and gas producer failed to reach a deal to restructure close to $1.2-billion worth of debt.
Lightstream shares, which fell from a high of $9.03 each before oil prices started their slide to 10 cents a piece, were halted Tuesday ahead of a de-listing review after the company announced late Monday it would seek bankruptcy protection.
BDC Credit Reporter
According to the BDC Credit Reporter, “We understand that GSO Blackstone (which manages the FS Group funds) and funds affiliated with Apollo Global have been doubling down in Lightstream Resources (as in so many other energy deals) to gain control of the company, rather than forcing an asset sale and recording a Realized Loss from the net proceeds. That’s part of a much bigger strategy by asset management organizations to remain invested in oil and gas through the cycle, which may yet prove to be the wisest move to maximize investment returns.”
FS Investment Corporation, is publicly traded and focuses on providing customized credit solutions to middle market companies. This BDC seeks to invest in the senior secured debt, as well as the subordinated debt of private middle market US companies. For more information on FS Investment Corporation, go here.
In the case of Lightstream, all exposure is held by funds associated with FS Investment and held in Senior Secured Second Lien Notes. As of June 2016, the FS Investment funds have written down exposure to the Company by just 9%.
The White Law Group is investigating the liability that broker-dealers and financial professionals may have for improperly recommending Lightstream investments to its clients.
The White Law Group continues to investigate FS Investment Funds and other BDCs. For more information on FS investments, go here. For a detailed look at BDCs, go here.
Brokerage firms and financial advisors have a fiduciary duty to perform adequate due diligence on any investment they recommend and to ensure that such recommendations are appropriate for their client in light of that particular clients’ age, income, investment experience, investment objectives, and net worth.
Recovery of Investment Losses
If you suffered losses investing in Lightstream Resources, 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 throughout the country in claims against their brokerage firm.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.