Can you imagine having the gall to ask your boss for a raise or a bonus following dismal performance? Well you’re clearly not a fat cat executive like those who work for Peabody Energy Corp. (“Peabody”), or like many of the other fat cats that have had their hands out seeking similar windfalls from other bankrupt oil, gas, coal and energy companies.
On Wednesday, August 3, 2016, Peabody asked a judge to allow the company to pay approximately $12 million in bonuses to six of its executives as the company aims to reach performance targets associated with its debt restructuring efforts following its April 2016 Chapter 11 Bankruptcy filing.
Offended? We trust that you are and we are here to help you determine whether we can help you recovery your investment losses. The Securities Arbitration and Investment Litigation Lawyers at the Silver Law Group, Law Office of David Chase, LLC and Ciklin Lubitz & O’Connell (www.oilgasfinraarbitration.com) are currently investigating cases relating to investments in Peabody, as well as many other similarly-fated oil, gas, coal and energy producing companies, such as Alpha Natural Resources, Arch Coal and Linn Energy – which have all filed for bankruptcy.
In March 2016, prior to its bankruptcy announcement, Peabody announced that it delayed interest payments on two loans. At the time, Peabody executives, now seeking a $12 million bonus, indicated that the company had sufficient capital to sustain operations. In other words – the company and its employees will continue in a business-as-usual fashion – but you, the investor … well, that’s a different story.
The prices and demand for coal have significantly declined since 2011 and continue to come under extreme pressure. Many other coal company may foreseeably follow Peabody, Arch Coal and Alpha Natural Resources into bankruptcy. Investors in these and other energy sector companies are suffering the consequences – whether their investments were in common stock, preferred stock and/or corporate bonds issued by these companies. In some instances, investors purchased Master Limited Partnerships (MLPs), and in addition to investment losses, there may be additional tax liability associated with bankruptcy, reorganization or restructuring efforts that may need to be examined.
Firms that provided underwriting services and analyst coverage on these companies include, but are not limited to Raymond James, Avondale, Needham, Merrill Lynch, Barclays Capital, BB&T Capital Markets, Jeffries, Robert W. Baird, Oppenheimer, JP Morgan, Morgan Stanley, FBR Capital, Deutsch Bank, Credit Suisse, RBC Capital Markets, Stifel, UBS and Wells Fargo.
Interestingly, Reuters came out with a piece today, “How Big Coal summoned Wall Street and faced a whirlwind,” citing how these Wall Street firms in fact help create and enable Peabody, Arch Coal and Alpha Natural Resources to overextend themselves in their exploration efforts. Why? All in the name of profit of course!
If your broker or investment advisor advised you to invest in Peabody, Arch Coal, Alpha Natural Resources, or any other similarly-situated company linked to the oil, gas, coal or the energy sector, 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 and recovered millions of dollars from large and regional 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 investment website at: www.oilgasfinraarbitration.com. You can also contact toll-free Mr. Silver at: (800) 975-4345 for a confidential, no-cost consultation on the potential for recovery of your investment losses. Our attorneys represent clients nationwide in securities cases to recover investment losses. There is no fee unless we obtain a recovery for you.