Recovery of Seventy Seven Energy Inc. (f/k/a Chesapeake Oilfield Operating) 6.625% 11/15/2019 bond losses

Have you suffered losses in Seventy Seven Energy Inc. (f/k/a Chesapeake Oilfield Operating) 6.625% 11/15/2919 bonds? If so, the securities attorneys of The White Law Group may be able to help you recover your losses with a FINRA arbitration claim against the brokerage firm that recommended the bonds to you.

Seventy Seven Energy Inc., formerly known as Chesapeake Oilfield Operating, L.L.C., owns directly and through subsidiary companies, drilling rigs, pressure pumping equipment and other oilfield services assets. The company issued debt to raise capital for its ventures, including the Seventy Seven Energy Inc. (f/k/a Chesapeake Oilfield Operating) 6.625% 11/15/2019 bonds.  As of this writing, Seventy Seven Energy Inc. (f/k/a Chesapeake Oilfield Operating) 6.625% 11/15/2019 bonds, CUSIP 165258AB0 are trading at $78.673.  The issue is rated Ba3/BB-/— by Moody’s and Standard & Poor’s.

High-yield bonds—also called non-investment-grade bonds, speculative-grade bonds, or junk bonds—are bonds that are rated below investment grade, typically ‘BB’ or lower by Standard & Poor’s and ‘Ba’ or lower by Moody’s. They pay high yields to bondholders because the borrowers credit ratings are less than pristine, making it difficult for them to acquire capital at an inexpensive cost. Junk bonds carry an above average risk that the issuer will default on the bond. The increased risk makes them arguably unsuitable for many investors.

This risk has come in to focus recently as oil prices have plummeted, causing the risk of default of the Seventy Seven Energy Inc. (f/k/a Chesapeake Oilfield Operating) 6.625% 11/15/2019 bonds to rise.

Brokerage-firms and investment adviser are required to make investment recommendations that are suitable for their clients in light of their clients particular investment situation – net worth, investment objectives, income, and investment experience.  Brokerage firms or advisors who sell junk bonds to unsuitable investors or fail to adequately disclose the risks of the investments can be held accountable for losses suffered through a FINRA arbitration claim.

If you have concerns regarding your investment in Seventy Seven Energy Inc. (f/k/a Chesapeake Oilfield Operating) 6.625% 11/15/2019 bonds and would like to speak with a securities attorney about your litigation options, please call The White Law Group at 312-238-9650 for a free consultation.

The White Law Group, LLC is a national securities fraud, securities arbitration and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.

To learn more about The White Law Group visit www.whitesecuritieslaw.com.