Gastar Exploration Inc. files Chapter 11 Bankruptcy Protection
The White Law Group is investigating the liability that FINRA registered brokerage firms may have for improperly selling high-risk oil and gas investments, like Gastar Exploration Inc., to its clients.
Gastar Exploration is engaged in the exploration, development and production of oil, condensate, natural gas and natural gas liquids in the U.S. Specifically, Gastar is focused on the exploration and development of its Mid-Continent assets in the Stack Play in Oklahoma, which includes the Hunton Limestone, Meramec Shale/Mississippi Lime, Woodford Shale, and Osage and Oswego formations, according to Hart Energy.
On October 31, 2018 Gastar Exploration filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court of the Southern District of Houston. The company entered into a pre-packaged restructuring support agreement with Term Lenders, Second Lien Note-holders, and other holders Existing Common Interests.
Gastar emerged as a private company named Gastar Exploration LLC following completion of its restructuring agreement in January 2019.
According to SEC filings, Gastar Exploration Inc. filed a form D to raise capital from investors in 2017. The offering type was debt, and the total offering amount “Represents $75,000,000 aggregate principal of Convertible Senior Notes due 2022, convertible into common stock upon stockholder approval.”
Investigating Potential Securities Claims
Energy investments such as Gastar Exploration Inc. typically involve a high degree of risk. The energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities. These investments may seem wise at first, until the dramatic drop in distributions.
Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.
Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.
If you are concerned about your investment in Gastar Exploration Inc., The White Law Group may be able to help. Please call the offices at 888-637-5510 for a free consultation with a securities attorney.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.