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Articles Tagged with Citigroup Global Markets

Rising oil prices apparently are not enough to save the once-promising master limited partnership (“MLP”) Seadrill Limited.  Seadrill stock plummeted, going down 54% on April 4, 2017 as the company announced that it will likely file for bankruptcy.

The most ominous news from Seadrill was its warning to investors of its substantial debt load and its expectation that shareholders are “likely to receive minimal recovery for their existing shares.”

Seadrill, as many oil and gas companies, has seen its value drop dramatically over the last three (3) years.  But the company was once highly-valued by Wall Street, with a market capitalization of $23.7 billion as recently as 2013.  Today, the company has dropped approximately 98% in value and sits at a market capitalization of just under $400 million.

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.

Our lawyers are investigating Boca Raton, Florida-based Raymond James & Associates, Inc. (CRD# 705) senior vice president Martin L. Waldman (CRD# 4566228), also known as “Skip,” for unsuitable recommendations in oil and gas securities.

Waldman has been in the industry for 13 years and has 6 disclosures on his FINRA BrokerCheck report.  He currently has a FINRA arbitration pending that alleges unauthorized trading and damages in the amount $121,000.

Our lawyers have filed claims against Raymond James for oil and gas losses for investors who have collectively lost thousands of dollars investing in risky, unsuitable oil and gas securities.  In those instances, the investor lost much of the initial investment after a Raymond James broker unsuitably recommended and overconcentrated the investor’s funds in the oil, gas, and energy sector.

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