Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating brokerage firms that placed investors in oil and gas related investments and who have suffered losses as a result. One company under investigation is oil and gas producer Halcón Resources Corporation (Halcón) (Stock Symbol: HK). According to news sources, Halcón received a de-listing warning from the New York Stock Exchange amid company moves to reduce its debt.
Halcón is a Houston based exploration and production company that recently worked out a deal to reduce its long-term debt by $548 million through private negotiations. Earlier this year, Halcón had its borrowing base cut by more than 50 percent as the company teeters on the edge during the ongoing oil downturn. The stock’s price has fallen under $1 after trading at about $3 just one year ago.
Our offices continue to report on investment losses suffered by investors in energy and oil and gas related investments that brokerage firms have increasingly recommended to retail investors in recent years. According to Bloomberg, U.S. high-yield debt issued to junk-rated energy companies grew four-fold to $208 billion. Most of these companies are now struggling to stay afloat with oil prices at $45. Investors have been exposed to energy investments through a variety of investment vehicles including private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and even individual stocks.