Midstates Petroleum Investment Losses
Midstates Petroleum Company, Inc. is an independent producer focused on oil fields in the Mississippian Lime play in Oklahoma and the Anadarko basin in Texas and Oklahoma. The company issued debt to raise capital for its ventures, including the Midstates Petroleum Company Inc. 10.75% 10/1/2020 bonds.
Midstates Petroleum Inc.’s stock began trading at the end of October on the New York Stock Exchange after the firm emerged from bankruptcy protection.
The Midstates’ stock was delisted in February for falling below the exchange’s minimum listing requirements. The stock is being traded under the company’s previous ticker symbol MPO. As with most bankruptcy reorganizations, Midstates’ previous common stock was canceled. Its $2 billion in debt was converted into equity in the newly organized company.
Investigation Continues
The White Law Group continues to investigate Midstates Petroleum investments and the brokers who unsuitably recommend them. To learn more about the investigation see, Recovery of Midstates Petroleum Company Inc. 9.25% 6/1/2021 bond losses.
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.
Brokerage-firms and investment advisors 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.
Recovery of Investment Losses
If you have suffered losses with your investment in Midstates Petroleum Company Inc. 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.
