Southcross Energy Partners LLC , Investigating Potential Claims
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 Southcross Energy Partners LLC, to its clients.
Southcross Energy Partners LLC has emerged from Chapter 11 bankruptcy protection, according to a Feb. 3 press release. The company has recently made a move from a master limited partnership structure to an LLC, becoming a privately held company, according to the press release.
Southcross Energy Partners LP and its subsidiaries originally filed for Chapter 11 bankruptcy in April 2019. At the time, the main filing listed $610.45 million of total assets and $614.26 million of total debts for the MLP.
As part of the Chapter 11 process, Southcross sold its natural gas pipeline network in Corpus Christi, Texas, and pipelines and related assets in Mississippi and Alabama. Houston-based Kinder Morgan Inc. bought the Texas assets for $76 million.
Investigating Potential Securities Claims
Energy investments such as Southcross Energy Partners 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 Southcross Energy Partners LLC, 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.