March 10, 2020 Comments (0) Blog, Current Investigations, Securities Fraud

Foresight Energy LP MLP Files Chapter 11 Bankruptcy

Foresight Energy LP MLP Files Chapter 11, featured by Top Securities Fraud Attorneys, The White Law Group

Foresight Energy LP MLP  Investment Losses

Foresight Energy’s Share price Declines 97% in the past year. 

Have you suffered losses investing in Foresight Energy LP MLP? If so, the securities attorneys of The White Law Group may be able to help you by filing a FINRA Dispute Resolution claim against the brokerage firm that sold you the investment.

Foresight Energy LP is a producer and marketer of thermal coal with over 3 billion tons of coal reserves in the Illinois Basin. The Company markets and sells its coal to a diverse customer base including electric utility and industrial companies in the eastern United States, as well as the seaborne thermal coal market.

According to a press release on March 10, 2020, Foresight Energy LP (FLEP) announced that, along with all of its subsidiaries, it has entered into a restructuring support agreement (RSA) with members of ad hoc lender groups, which hold more than 73% of the approximately $1.4 billion in claims under each of Foresight’s first lien credit agreement and second lien notes.

Foresight Energy also reportedly filed voluntary petitions for relief under Chapter 11 to access $100 million in new financing.

Foresight Energy LP operates as a master limited partnership. A Master Limited Partnership (MLP) is a type of limited partnership that is publicly traded. MLP’s receive the same tax benefits of a limited partnership combined with the liquidity of a publicly traded security. In order to be classified as an MLP the partnership must receive 90% of its cash flow from a “qualifying source” – such as real estate, natural resources or commodities.

Unfortunately for investors, most oil and gas MLPs are down substantially in the last year. According to Yahoo Finance, in the past year, Foresights’ share price has reportedly declined 97%.

MLP’s are extremely complex and risky. They are only suitable for wealthy, sophisticated retail investors or institutional investors.

The White Law Group is continuing its investigation into the liability that brokerage firms may have for recommending Foresight Energy to their clients. Brokerage firms that sell such products are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of the client’s age, net worth, investment experience, 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 are concerned about your investment losses in Foresight Energy LP, please call the securities attorneys at The White Law Group at 888-637-5510.

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 White Law Group and its representation of investors in FINRA arbitration claims, visit https://www.whitesecuritieslaw.com.

 

Comments are closed.