In April 2016, Peabody Energy Corp. (“Peabody”), a one-time Wall Street darling based in St. Louis, Missouri filed for Chapter 11 Bankruptcy protection. Almost a year to the day, Peabody emerged from bankruptcy on Monday, April 3, 2017. A day later, another one-time Wall Street darling, Seadrill (ticker “SDRL”), a deepwater drilling contractor that provides drilling services to the oil and gas industry, declined 54% following its warning to investors that the Bermuda-based company is likely to seek bankruptcy protection (or the equivalent) in the United States or United Kingdom (company headquarters).
Seadrill is just another corporate casualty among the hundreds of oil, gas, coal and energy companies that filed and sought bankruptcy production since early 2015. The Securities Arbitration and Investment Litigation Lawyers at the Silver Law Group, The Law Office of David Chase, P.A. and Ciklin Lubitz & O’Connell (www.oilgasfinraarbitration.com) are currently investigating cases relating to investments in Peabody and Seadrill, 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.
Like many other energy companies, Seadrill is likely to follow a familiar “play book”: seek Ch. 11 bankruptcy protection, negotiate golden parachutes for its executive team, renegotiate debt and credit, emerge from bankruptcy, and leave numerous investors with little or nothing to show for their principal invested.
The prices and demand for coal have significantly declined since 2011 and continue to come under extreme pressure. Many other oil, gas, coal and energy companies may follow Seadrill into bankruptcy. Investors in energy sector companies are suffering the consequences – whether their investments were in common stock, preferred stock, master limited partnerships (MLPs), or corporate bonds issued by these companies.
Firms that provided underwriting services and analyst coverage on Seadrill and Peabody, as well as many other oil, gas and energy companies include, but are not limited to, Morgan Stanley, Merrill Lynch, Barclays Capital, BB&T Capital Markets, Jeffries, Robert W. Baird, Oppenheimer, JP Morgan, Deutsch Bank, Credit Suisse, RBC Capital Markets, Stifel, UBS and Wells Fargo.
If your broker or investment advisor advised you to invest in Seadrill, Peabody, or any other oil, gas, coal or energy sector company, 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. No attorney’s fee is owed if there is no recovery.
Our lawyers have collectively represented hundreds of investors in FINRA securities arbitration claims and recovered millions of dollars from large and regional brokerage firms. For more information about the law firms, lawyers, and the oil and gas investment practice, please visit: www.oilgasfinraarbitration.com. You can also call toll-free for Mr. Silver at: (800) 975-4345 for a confidential, no-cost consultation. Our attorneys represent clients nationwide in securities cases to recover investment losses. No fee unless we obtain a recovery for you.