EXCO Resources Inc. – Files Chapter 11 Bankruptcy Protection

How to Recover your Investment losses – EXCO Resources Inc.

EXCO Resources Inc. is an independent oil and natural gas company engaged in the exploitation, exploration, acquisition, development and production of onshore U.S. oil and natural gas properties with a focus on shale resource plays. The company is located in Dallas, TX.

On January 16, EXCO Resources Inc. and certain of its subsidiaries have filed voluntary petitions for a court-supervised reorganization under Chapter 11 of the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. The company says its goal is facilitating a restructuring of its balance sheet.

EXCO intends to operate in the ordinary course of business during the restructuring process.

In 2016, we told you the company announced it was looking at “restructuring,” which is typically a code word for bankruptcy, and the company’s stock took a nosedive.

The White Law Group is investigating potential claims involving broker dealers who may have unsuitably recommended EXCO Resources to investors.

The energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities. Investments such as EXCO Resources may seem wise at first, until the dramatic drop in distributions.

Many oil and gas LPs are struggling to make distribution payments and many end up defunct.

EXCO Resources Inc. often raises capital through Reg D private placement investments. The trouble with Reg D Private Placement is that they involve a high degree of risk. They are typically sold as unregistered securities which lack the same regulatory oversight as more traditional investment products like stocks or bonds.

Alternative investments such as these, have high sales commissions and due diligence fees. These high commissions and fees can provide brokers with an enormous incentive to push the product to unsuspecting investors who do not fully understand the risks.  They may even focus on the income potential and tax benefits while downplaying the risks.

Investigating Potential Claims

The White Law Group is investigating the liability that brokerage firms may have for improperly selling oil and gas investments like EXCO Resources Inc. to investors.

Broker dealers that sell private placements are required to perform adequate due diligence on all investment recommendations. They must ensure that each investment recommendation that is made is suitable for the investor in light of the investor’s age, risk tolerance, net worth, financial needs, and investment experience.

If a broker or brokerage firm makes an unsuitable investment recommendation or fails to adequately disclose the risks associated with an investment they may be found liable for investment losses in a FINRA arbitration claim. Fortunately, FINRA does provide for an arbitration forum for investors to resolve such disputes.

Free Consultation

Did you lose money investing in EXCO Resources at the advice of your advisor? The securities attorneys at The White Law Group may be able to help you to recover your losses. Please call The White Law Group at 1-888-637-5510 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Franklin, Tennessee. The firm represents investors throughout the country in claims against their brokerage firm.

For more information on the firm and its representation of investors, visit www.WhiteSecuritiesLaw.com.