Have you suffered losses investing in Penn Virginia Bonds? If so, the attorneys at The White Law Group may be able to help you recover your losses with a FINRA arbitration claim against the brokerage firm that recommended the bonds to you.
Penn Virginia Corp., one of the largest oil and natural gas drillers in Texas’ Eagle Ford Shale, filed for bankruptcy May 12th after halting drilling in February.
According to the bankruptcy papers, Penn Virginia officials said dipping oil and natural gas prices prompted them to negotiate a break with lenders on more than $1.2 billion of debt. The company’s chapter 11 filing will help the company execute the reorganization, which already has support from nearly 90% of funded debtholders.
In January, the company was delisted from the New York Stock Exchange for having a too-low share price. Shares closed at 8 cents Wednesday, down from more than $10 in 2014 and $5 as recently as June.
High-yield bonds—also called non-investment-grade bonds, speculative-grade bonds, or junk bonds—are bonds that are rated below investment grade, typically ‘BB’ or lower by Standard & Poor’s and ‘Ba’ or lower by Moody’s. They pay high yields to bondholders because the borrowers credit ratings are less than pristine, making it difficult for them to acquire capital at an inexpensive cost. Junk bonds carry an above average risk that the issuer will default on the bond. The increased risk makes them arguably unsuitable for many investors.
If you have lost money investing in the following Penn Virginia offerings, then The White Law Group may be able to help:
Penn Virginia 8.5% 05/01/2020
Penn Virginia 8.25% 04/15/2018
Penn Virginia 7.25% 04/15/2019
Brokerage-firms and investment adviser are required to make investment recommendations that are suitable for their clients in light of their clients particular investment situation – net worth, investment objectives, income, and investment experience. Brokerage firms or advisors who sell junk bonds to unsuitable investors or fail to adequately disclose the risks of the investments can be held accountable for losses suffered through a FINRA arbitration claim.
If you have concerns regarding your investment in Penn Virginia bonds and would like to speak with a securities attorney about 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 and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
To learn more about The White Law Group visit www.whitesecuritieslaw.com.