Update: Foresight Energy LP MLP Securities Investigation

The White Law Group continues to investigate potential securities claims involving Foresight Energy LP. 

Have you suffered losses investing in Foresight Energy LP MLP? If so, the securities attorneys of The White Law Group may be able to help. 

Foresight Energy LP develops and operates coal mines and related infrastructure. Through its subsidiaries, Foresight owns or controls more than three billion tons of coal reserves in the Illinois and Northern Appalachian coal basins, according to its website. 

On March 10, 2020, Foresight Energy LP (FLEP) filed to reorganize through Chapter 11 bankruptcy protection to access $100 million in new financing. 

The chapter 11 plan purportedly reduced the company’s debt by over $1.1 billion, and allowed Foresight to emerge with $225 million in secured exit facility loans, $75 million dollars of which will convert to equity 60 days following the closing of the exit facility, and approximately $63 million in cash on hand.

Foresight Energy LP operated as a master limited partnership.  A Master Limited Partnership (MLP) is a type of limited partnership that is publicly traded. MLP’s receive the same tax benefits of a limited partnership combined with the liquidity of a publicly traded security. In order to be classified as an MLP the partnership must receive 90% of its cash flow from a “qualifying source” – such as real estate, natural resources or commodities. 

MLP’s are extremely complex and risky. They are only suitable for wealthy, sophisticated retail investors or institutional investors. 

The White Law Group is investigating the liability that brokerage firms may have for recommending Foresight Energy to their clients.  

Brokerage firms that sell such products 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 the client’s age, net worth, investment experience, 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. 

For a free consultation with a securities attorney, please call The White Law Group at 888-637-5510. 

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 Seattle, Washington. 

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

To learn more about the firm’s investigation, please see: 

Foresight Energy LP MLP Files Chapter 11 Bankruptcy 

Foresight Energy LP Investment Losses