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Articles Tagged with Sandridge Energy

A FINRA arbitration panel held Wunderlich Securities (CRD# 2543) and Ralph E. DeRose (CRD# 721488) liable for over $1 million in damages to a customer alleging securities misconduct related to energy investments on April 25, 2017.

According to the Award, Wunderlich’s and DeRose’s customers alleged that DeRose failed to sell holdings in their accounts at their request and overconcentrated their accounts in unspecified energy holdings.

DeRose is based out of Wunderlich’s Beachwood, Ohio branch.  Wunderlich has employed DeRose since October 2010.

SandRidge Energy Inc. (“Sandridge”) emerged from bankruptcy on October 4, 2016, shedding $3.7 billion of debt in its reorganization and trading on the New York Stock Exchange.

Our lawyers have been monitoring the financial state of many oil and gas companies, and the brokerage firms and brokers that underwrote and sold the oil and gas companies’ securities.

Sandridge filed for bankruptcy protection in May 2016, citing high debt and low commodity prices.  Judge David R. Jones last month approved the negotiated reorganization plan after it received “overwhelmning” support from Sandridge’s lenders.

Sandridge Energy (“Sandridge”) and Arch Coal (“Arch”) earned court approval to emerge from bankruptcy on September 9 and September 13, 2016, respectively.  Together, Sandridge and Arch were able to shed approximately $9 billion in debt and start anew.  How nice!

If you’re a Sandridge and Arch creditor, how does that sit with you?

These companies join 100 other North American oil producers that have filed for bankruptcy protection since early 2015.  The Securities Arbitration and Investment Litigation Lawyers at the Silver Law Group, Law Office of David Chase, LLC and Ciklin Lubitz & O’Connell are currently investigating cases relating to investments in Sandridge and Arch.  Sandridge filed for bankruptcy protection in May 2016, subsequent to Arch’s bankruptcy filing in January 2016.

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.

A report published by the law firm Haynes and Boone on August 1, 2016 found that 90 gas and oil producers in the United States and Canada have filed bankruptcy from January 3, 2015 to August 1, 2016.  Over half of the bankruptcies have come in this year alone.

According to the report, the total debt defaulted on by the 90 companies is $66.5 billion.  Some of the more notable firms listed in the report are Linn Energy, LLC; Breitburn Operating LP; Sandridge Energy, Inc.; and Atlas Resource Partners, L.P., all of which have filed for bankruptcy in the last three months, many of which were heavily recommended by financial advisors and their respective institutions.

The numerous bankruptcies are the product of oil prices’ dramatic fall from the over-$100 per barrel heaven it occupied for some time.  While the prices of the commodity have always been volatile and difficult to determine, the prices have dramatically dropped.

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