Concerned about investment losses in Quintana Energy Services LP?
Have you suffered losses investing in Quintana Energy Services LP? If so, The White Law Group may be able to help you recover your losses by filing a FINRA Resolution claim against the brokerage firm that sold you the investment.
Through its subsidiaries, Quintana Energy Services LP, offers hydraulic fracturing services to oil and gas industry. It also offers directional drilling and completion services. The company was incorporated in 2014 and is based in Houston, Texas.
The company raises money for investments through Reg D private placement offerings. These Reg D private placements are then typically sold by brokerage firms in exchange for a large up front commission, usually between 7-10%.
Lawsuit involving Quintana Energy Services LP
Quintana Energy Services LP sued onetime potential equity investor Bain Capital Credit LP in Texas state court last December. Quintana accused the investor of violating a confidentiality agreement through a hostile loan-to-own strategy that could force the company into bankruptcy.
According to court papers, Quintana claimed negotiations with Bain to invest $60 million in the company failed when the investor couldn’t reach an agreement with Quintana’s first-lien lenders and management. Quintana then convinced existing stakeholders to invest $40 million in equity, but said that investment now could potentially fall apart because of Bain’s alleged maneuvering to buy senior debt and block Quintana’s effort to restructure without Bain’s equity.
Quintana claimed its potential equity investors would refuse to invest $40 million in the company if Bain acquires a significant portion of the company’s senior debt, and told the court if Bain wasn’t stopped before Dec. 23, Quintana will run out of money and be forced to file bankruptcy.
The trouble with alternative investment products, like Quintana Energy Services LP, is that they involve a high degree of risk and are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks and bonds. An additional risk inherent to Quintana Energy Services offerings is also the general risk that comes with the energy market – a market that has seen enormous losses over the last few years due to declining prices.
Broker dealers that sell alternative investments 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.
However, another problem with Reg D private placements is that the high sales commission brokers earn for selling such products sometimes can provide some brokers with enough incentive to push the product to unsuspecting investors who do not fully understand the risks of these types of investments.
Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes and 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 in a FINRA arbitration claim.
To determine whether you may be able to recover investment losses incurred as a result of your purchase of Quintana Energy Services LP or another private placement investment, please contact The White Law Group at 1-888-637-5510 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.