Aztec Oil & Gas Bankruptcy Plan Filed
Have you lost money investing in Aztec Oil & Gas? If so, The White Law Group may be able to help you recover your investment losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.
The White Law Group has represented a number of investors in claims involving broker-dealers recommending that investors invest in speculative oil and gas partnerships such as Aztec Oil & Gas.
According to a press release, on August 30, 2011, Aztec Oil & Gas closed a partnership under its Aztec XI Oil & Gas Drilling Program. The limited partnership, “Aztec XI-D Oil & Gas LP”, was focused on drilling shallow wells for oil in Texas and closed with approximately $1.6 million of funding.
Aztec’s wholly-owned subsidiary, Aztec Energy, LLC, held a thirty percent (30%) ownership interest in the Partnership by contribution, and acted as the Managing General Partner. Aztec Drilling & Operating, LLC, another wholly-owned Aztec subsidiary, served as the Partnership’s drilling contractor and operator.
Aztec raised a total of $19,273,750 under its XI Program, according to Waylan R. Johnson, President, Aztec Oil & Gas, Inc.
Unfortunately for investors in Aztec Oil & Gas partnerships, Aztec Energy LLC filed for bankruptcy with $500,000 debt last April.
Aztec Oil & Gas Bankruptcy Plan
Aztec Oil & Gas Creditors Franklin Fisher, Jr. and Livingston Growth Fund Trust filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan Proponents have proposed their Plan consistent with the provisions of the Bankruptcy Code. The Plan proposed by Mr. Fisher and the Livingston Growth Fund Trust (‘Creditor Plan’) provides that all remaining assets of the Debtors will be transferred to Aztec Oil & Gas, with all litigation claims transferred to a litigation trust for the benefit of all unsecured creditors. All entities shall be dissolved other than Aztec Oil & Gas, which will continue operations.”
The Disclosure Statement continues, “The Plan generally contemplates retaining the 2 real property working interests, replacing current management, including the board of directors, and pursuing litigation claims that will compensate the creditors for the actions of current management and their agents. The litigation claims will be reviewed and prosecuted by an independent third party trustee selected by the Plan Proponents, and approved by the Bankruptcy Court….The Debtor Aztec Oil & Gas will continue while all other subsidiaries, including the partnerships will be dissolved at confirmation.”
Due to the high degree of risk associated with oil and gas partnerships, like those offered by Aztec Oil & Gas, they are generally more appropriate for sophisticated and institutional investors. Unfortunately, because of the high commissions these products generally pay to brokers, they are often sold to unsophisticated and retired investors.
Brokerage firms have a fiduciary duty to perform adequate due diligence to determine if an investment is appropriate for a particular client given the client’s age, net-worth, financial objectives, investment experiences, financial needs, and risk tolerance. If a brokerage firm makes unsuitable investment recommendations or fails to adequately disclose the risks associated with an investment they may be liable for investment losses.
If you would like to speak with a securities attorney regarding your ability to recover investment losses in a Aztec Oil & Gas partnership, please call 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 Vero Beach, Florida.
For more information on The White Law Group, please visit our website at www.WhiteSecuritiesLaw.com.