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Ultra Petroleum Corp Files Bankruptcy

Ultra Petroleum Corp joins the growing list of energy companies that have filed for bankruptcy in recent years. On Friday April 30, 2016 the company filed for chapter 11 bankruptcy protection.

Based in Houston, Texas, Ultra Petroleum is an independent oil and gas with assets in Utah, Pennsylvania, and a strong focus on natural gas in Wyoming. According to their website, “Ultra is the top natural gas producer in the State of Wyoming.”

Unfortunately it seems Ultra Petroleum’s debt exceeded their ability to pay lenders. Bloomberg reports, in court filings, Ultra Petroleum Corp listed $1.3 billion in assets and $3.9 billion in debt. “Between March and early April, Ultra missed a series of principal and interest payments owed to lenders and bondholders. And on April 14, the company was sued by pipeline operator Sempra Rockies Marketing LLC for failing to pay transport fees.”

Since 2014 depressed energy prices has turned many oil and gas companies upside down and left them struggling to stave off bankruptcy. While oil and gas prices continue to remain low some analysts expect Ultra Petroleum will not be the last to join the bankruptcy list. According to Bloomberg, “JPMorgan Chase & Co. strategists said that oil and gas companies are likely to experience a 20 percent default rate over the next two years.”

The White Law Group is investigating whether some brokerage firms may have improperly recommended oil and gas investments to clients. Unfortunately, many investors were not made adequately aware of the risks associated with energy investments. Energy investments are generally speculative and can be very high risk ventures. Even bonds in the oil and gas industry, which many investors think of as “safe,” are not without risk.

Our investigation includes but is not limited to:

  • Ultra Petro 144A 6.125%
  • Ultra Petro 144A 5.75%
  • Ultra Petro 5.75%

Before recommending an investment, your broker has a fiduciary duty to adequately disclose the risks involved in the investment and to perform the necessary due diligence to determine whether the investment is suitable for the investor. To the extent that some brokerage firm failed to perform adequate due diligence or makes unsuitable investment recommendations, the firm may be held liable for any resulting losses in a FINRA arbitration claim.

To determine whether you may be able to recover investment losses incurred in an oil and gas investment, please contact 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. For more information on the firm, visit www.WhiteSecuritiesLaw.com.

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