Linn Energy, LLC (LINE) filed for bankruptcy protection in May 2016. U.S. Bankruptcy Judge David Jones issued an Order today confirming LINE’s chapter 11 bankruptcy restructuring plan. Our attorneys have previously written on the subject of LINE and continue to update accordingly.
It is believed that under the bankruptcy plan, LINE will be able to shed approximately $4.3 billion of the $6 billion debt it claimed in its May 2016 bankruptcy filing. The remaining $1.2 billion in debt will be absorbed by Berry Petroleum Co. LLC, a company LINE acquired in 2013, which will now become a separate entity.
Both LINE and Berry Petroleum are expected to emerge from bankruptcy and business will continue as usual, leaving many investors in a lurch and in many respects “holding the bag.” The Securities Arbitration and Investment Litigation Lawyers at the Silver Law Group, The Law Office of David Chase, LLC and Ciklin Lubitz & O’Connell (www.oilgasfinraarbitration.com) continue to investigate and have matters pending against firms/broker that underwrote, sold and recommended LINE to investor customers.
LINE was once one of the darlings of Wall Street investment firms, but is now possibly one of the largest of more than 100 North American oil producers that have sought bankruptcy protection since early 2015. This time a year ago, investors in LINE were scrambling to determine whether bankruptcy would result in additional tax liability because LINE investments were sold in the form of stocks and bonds as well as structured as Master Limited Partnerships (MLPs).
Due to the structure of the investment, when a company in or outside of bankruptcy restructures its debt, the forgiven debt may be treated as “income” for MLP investors (called unitholders). This “cancelation of debit income” (CODI) can be like rubbing salt in a wound for investors that may have lost all or most of their principal invested, as they will later find out that the company saddled them with a tax liability in addition to their investment losses.
If your financial advisor recommended LINE or LINNCO investments or his/her firm failed to properly disclose the potential investment and other risks associated with your investments in LINE, LINNCO, or other oil and gas investments or MLPs, or if you were unaware of the potential tax consequences of such an investment, we are interested in reviewing these issues with you in more detail. Firms that underwrote and/or provided analyst coverage on LINN and LINNCO include, but are not limited to, Merrill Lynch (CRD# 7691), UBS Financial Services (CRD# 8174), Wells Fargo, RBC Capital Markets (CRD# 31194), Barclays Capital (CRD# 19714), Citigroup Global Markets (CRD# 7059), and Raymond James & Associates (CRD# 705).
The Securities Arbitration and Investment Litigation Lawyers at the Silver Law Group, The Law Office of David Chase, LLC and Ciklin Lubitz & O’Connell (www.oilgasfinraarbitration.com) currently have and continue to investigate many brokerage and wealth management firms for their failures to adhere to the laws, regulations and rules that apply to them in connection with the sale of securities in LINE, LINNCO, and the oil, gas and energy sectors. If you have lost money in these or similar investments, you may have an opportunity to recover some or all of those losses.
If your broker or investment advisor and their firm advised you to invest in LINE, LINNCO, or any security linked to the oil, gas or energy industry, and you have incurred substantial losses, please contact us at www.oilgasfinraarbitration.com for a no-cost case evaluation. Become informed about your rights, explore whether you have a claim and see if we can be of assistance in trying to recover your investment losses. Cases are taken on a contingency fee basis, meaning no attorney’s fee is owed if there is no recovery.
Our lawyers have collectively represented hundreds of investors in FINRA or securities arbitration claims, currently have matters pending involving LINE, LINNCO securities. Our lawyers have recovered millions of dollars for our investor clients from large and regional investment advisors and brokerage firms. For more information about the Law Firms, the lawyers, and the oil and gas investment practice area, please visit the oil and gas investor’s website at: www.oilgasfinraarbitration.com. You can also contact toll-free Mr. Silver at: (800) 975-4345 for a confidential, no-cost consultation to discuss your potential for recovery of your investment losses. Our attorneys represent clients nationwide in securities cases to recover investment losses. No fee unless we obtain a recovery for you.