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.
Oil & Gas Investment Fraud Lawyer Blog
