Cloud Peak Energy (CLDPQ) Stock 1-year Change -97.7%
Have you suffered losses investing in Cloud Peak Energy at the recommendation of your financial advisor? If so, the securities attorneys at the White Law Group may be able to help you to recover your losses by filing a FINRA Arbitration claim against the brokerage firm that sold you the investment.
Cloud Peak Energy Inc., the only pure-play Powder River Basin (PRB) coal company, announced today that it has filed voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
According to reports,the company intends to continue a marketing process for all of its assets. Cloud Peak Energy expects its mines will continue normal operations throughout the process, safely and efficiently meeting all customer commitments.
Subject to court approval, and in conjunction with the filing, Cloud Peak Energy has received a commitment for approximately $35 million in debtor-in-possession (“DIP”) financing from certain of the Company’s prepetition secured noteholders. The company expects to use the $10 million in DIP financing to assist in providing enough liquidity to continue operating during the sale process.
The company has also entered into an Amended and Restated Sale and Plan Support Agreement with holders of approximately 62% in dollar amount of the Company’s secured notes due 2021 and more than 50% in dollar amount of the Company’s unsecured notes due 2024.
Bad News for Investors
According to investing.com, the company’s stock is down -97.7% over the last year.
High Risk Energy Investments
The White Law Group is investigating the liability that brokerage firms and financial advisors may have for recommending high risk energy investments, like Cloud Peak Energy, to their clients.
Brokerage firms that recommend energy investments are required to perform adequate due diligence on the investments. They must ensure a reasonable likelihood of success.
Brokerage firms must also evaluate whether the investments are suitable in light of their client’s age, net worth, investment experience, risk tolerance, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.
If you suffered losses investing Cloud Peak Energy or another energy investment and would like to discuss your litigation options, please call 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 Vero Beach, Florida.
For more information on The White Law Group, visit https://www.whitesecuritieslaw.com.