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Written by 2:01 pm Blog, Current Investigations

Update: Warren Resources

warren resources

Recovery of Warren Resources Investment Losses

Have you suffered losses investing in Warren Resources Bonds?  If so, the securities attorneys of The White Law Group may be able to help you to recover your losses through FINRA Arbitration.

Warren Resources, an oil and gas producer that operates in California, Pennsylvania and southwestern Wyoming, filed for Chapter 11 protection on June 2nd. On September 13, 2016, the bankruptcy court approved the Company’s reorganization plan.

The reorganization plan was held up for awhile by a second lien lender, but after accommodations were made and the Plan amended, all the key parties agreed. Existing equity investors, though, will be completely wiped out.

The Plan includes a major reduction in total debt outstanding, and the existing lenders swapping most of the debt outstanding for equity in the post-bankruptcy entity.

Post-bankruptcy Warren Resources will have $130mn in Senior Debt  plus any amount outstanding under its $20mn Debtor In Possession facility, which will be rolled in, according to reports.

All is held by  FS Investment Group funds and managed by GSO Blackstone. Biggest amount owed is to FS Energy and Power Fund.  

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.

Specifically, The White Law Group is investigating potential claims involving the following Warren Resources offerings:

Warren Res 9% August 1, 2022

Warren Res 144 A 9% August 1, 2022

Warren Res Cv 12%  December 31, 2022

Warren Res 144A Cv 12% December 31, 2020

Warren Res Cv 12% December 31, 2016

If you suffered losses investing in a Warren Resources offering and would like to speak to a securities attorney to discuss your litigation options, please call the securities attorneys of The White Law Group at 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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