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Lonestar Resources US Inc. to File for Chapter 11 Bankruptcy

Lonestar Resources US Inc. to File for Chapter 11 Bankruptcy, featured by top securities fraud attorneys, The White Law Group

Lonestar Resources US Inc. Investment Losses

Lonestar Resources US Inc. announced this week its plan to file for chapter 11 bankruptcy after reaching a restructuring support agreement that will eliminate roughly $390 million in debt obligations and preferred equity interests.

The shale driller, based in Fort Worth, Texas, said that under the plan, about $250 million of its 11.25% senior notes due 2023 would be converted to equity, while holders of its preferred equity would receive about 3% of the reorganized company’s new equity interests, according to various reports.

Investigating Potential Securities Claims 

Energy investments such as Lonestar Resources US Inc. typically involve a high degree of risk. The energy market has seen enormous losses over the last few years due to the declining cost of oil and other energy commodities.?These investments?may?seem?wise?at first, until the dramatic drop in?distributions. 

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

Prior to making recommendations to an individual investor, brokerage firms are required by the Financial Industry Regulatory Authority (FINRA) to disclose all the risks of an investment. Recommendations should only be made if the investment is suitable for an individual investor given their age, investment objections, investment experience and risk tolerance.

Brokerage firms that do not perform adequate due diligence on an investment and/or make unsuitable recommendations can be held accountable for investment losses through FINRA arbitration.

If you are concerned about your investment in Lonestar Resources US Inc., The White Law Group may be able to help. Please call the offices at 888-637-5510 for a free consultation with a securities attorney. 

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, please visit https://www.whitesecuritieslaw.com.


Tags: , , , , , , , , Last modified: September 16, 2020