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Articles Tagged with Alpha Natural Resources

Peabody Energy (OTCPK: BTUUQ) announced on January 26, 2016 that the U.S. Bankruptcy Court for the Eastern District of Missouri approved the company’s reorganization plan, disclosure statement, private placement agreement and backstop agreement.

The bankruptcy court’s approval will allow Peabody to begin soliciting votes from its creditors on the proposed plan of reorganization ahead of March deadline and hearing to confirm the plan.

The bankruptcy court’s approval is another step closer to the final blow for shareholders, who, according to some analysts, probably will end up with cancelled shares and no equity in the reorganized Peabody Energy.  Shareholders have been fighting to get a piece of the reorganized company, even attempting to create an official committee to assist in crafting the reorganization plan.  The bankruptcy court judge denied that request earlier this month.

Recent articles and reports reveal 90 companies with over $66.5 billion in total debt have defaulted on bonds issued to investors just like you. Some of these companies include well-known companies such as Linn Energy, Linn Co., Alpha Natural Resources, Arch Coal, Sandridge Energy and many others that were highly touted by large Wall Street firms just a few years ago.

In an article published earlier today in USA Today, there is a report that corporate bond defaults in the United States are expected to increase with a 30% jump predicted in bond defaults in the year to come.

Although this is not quite on par with the widespread losses incurred by investors in 2008-2009 during the financial crisis the investors who are experiencing these losses are no less impacted when it results in lost principal and it negatively impacts their financial security.

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If your investment accounts include stocks, bonds or partnership interests in companies currently or previously operating in the energy sector, particularly those in the oil and gas industries and you have incurred losses or damages as a result of those investments,

At least 50 oil and gas producers in North America have sought bankruptcy protection in the past year.  At least 20 of those are/were publicly traded companies who have stock and bond investors now staring at substantial losses.

While some companies continue to operate as debtors in bankruptcy, where does that leave the individual investors that bought the bonds, stocks, or partnership interests?  For many they are faced with substantial principal losses.  Many investors are finding that the original principal invested is close to worthless.  Some are finding that their dividend or interest income stream has been interrupted.  Others may soon find that a bad situation can become even worse where partnership interests in some Master Limited Partnerships are going through debt restructuring, that process is resulting in potential negative tax consequences for some investors.  Where debt is being forgiven and/or restructured and phantom “income” is attributed some investors find they not only lost their investment, they now have a tax liability to contend with as well.

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