ARSENAL ENERGY HOLDINGS LLC LOSSES?

ARSENAL ENERGY HOLDINGS LLC (“AEH”) LOSSES?

Soreide Law Group is reviewing possible claims against stockbrokers and financial advisors who placed investors in Arsenal Energy Holdings LLC (“AEH”) (formerly known as Mountaineer Energy Holdings). AEH is the parent company of Arsenal Resources – a natural gas producer in Marcellus Shale. On February 4, 2019, Arsenal Energy Holdings LLC, a Wexford, Pennsylvania company, filed for chapter 11 bankruptcy. The case was filed in the District of Delaware under Case #: 19-10226. Evidently, AEH’s Plan of Organization called for a debt-for-equity swap in which $861,000,000 in outstanding subordinated notes would convert to equities.

Arsenal Energy Holdings LLC Files For Chapter 11 Bankruptcy

Apparently, Arsenal Energy Holdings LLC, whose subsidiaries control 77 Appalachian Basin-based natural gas wells, received support from equity and note holders to move forward with the plan. Evidently, under the Plan of Organization, equity holders are due to obtain all of the Class B common units. Also, current note holders will receive all Class A common units. AEH emerged from the bankruptcy on February 14, 2019, making an unusually fast turnaround time.
Brokers and investment advisors have traditionally recommended oil and gas investments to investors as a way to generate attractive returns. Some have pushed these investments by focusing on high profits, income and consumer demand for energy. Yet, there are actually considerable risks when it comes to those investments. Particularly, the investments are sector specific and contain significant volatility. Particularly, if there is more supply than demand for oil, oil prices fall and investors feel the pain. For example, investors sustained large losses when oil prices dropped dramatically between 2014 and 2015.

Brokers And Advisors Possibly Made Unsuitable Recommendations Or Misrepresentations About AEH

It is possible some brokers and advisors made recommendations to investors concerning Arsenal Energy Holdings without adequately discussing risks. By misrepresenting or omitting information about the risks of oil and gas investments, investors may have purchased investments that they would not have otherwise purchased. Unfortunately, investors often do not realize the true extent of the risks until they have already suffered losses. Moreover, some stockbrokers and financial advisors place too much of investors’ assets in risky oil and gas investments causing investors to be overexposed to losses. It is possible that brokers and advisors unreasonably sold AEH investments to conservative investors. Fortunately, investors can sue their brokers or financial advisors for losses caused by misrepresentations or unsuitable recommendations.

Did You Lose Money By Investing In Arsenal Energy Holdings LLC?

Have you suffered losses on Arsenal Energy Holdings? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.