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Written by 2:54 pm Blog

Investor Alert: C&J Energy Files Bankruptcy Protection

The White Law Group is currently investigating losses suffered by investors arising from the purchase of C&J Energy Services at the recommendation of their brokerage firm or financial advisor.  If you suffered losses investing in C&J Energy Services, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.

According to their website, C&J Energy Services is a leading provider of well construction, well completions and well services to the oil and gas industry.

On July 20, C&J filed for chapter 11 protection in the U.S. Bankruptcy Court in Houston with a debt-restructuring deal with senior lenders. The agreement has the support of more than half of C&J’s debtholders, who have agreed to back the new financing that is included in the agreement.

The restructuring is a debt-for-equity swap under which lenders have agreed to forgive all the debt they are owed in exchange for 100% ownership of the restructured company. The deal also includes $100 million in bankruptcy financing, a $100 million bankruptcy-exit facility and a $200 million rights offering. The company will also issue new seven-year warrants, convertible for up to 6% of new common stock at a $1.55 billion strike price.

C&J joins dozens of other oil-field servicers brought down since 2014 by tanking oil prices. Since the beginning of last year, more than 70 North American oil-field servicers have filed for bankruptcy protection, according to reports.

The company posted losses of $872.5 million for 2015 and $428.4 million during the first quarter of 2016, causing it to fall out of compliance with its debt agreements and sparked talks with its lenders.

Last week, the company’s stock was trading at 31 cents a share.

Brokerage firms that recommend energy investments are required to perform adequate due diligence on the investments to ensure a reasonable likelihood of success, and to evaluate whether the investments are suitable in light of their client’s age, net worth, investment experience, risk tolerance, and investment objectives. Firms that fail to perform adequate due diligence, or that make unsuitable recommendations, can be held responsible for losses in a FINRA arbitration claim.

If you suffered losses investing in C&J Energy or another energy investment and would like to discuss your litigation options, please call The White Law Group at (888) 637-5510  for a free consultation.

The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.  The firm represents investors throughout the country in FINRA arbitration claims against their brokerage firm.

For more information on The White Law Group, visit www.whitesecuritieslaw.com.

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