obalt International Energy, Inc. Investment Losses?
Soreide Law Group is investigating claims on behalf of investors who purchased investments in Cobalt International Energy, Inc. (CIEIQ) a Houston, Texas based development stage petroleum exploration and production company. On December 14, 2017, Cobalt filed for bankruptcy in the United States bankruptcy Court for the Southern District of Texas.
Cobalt International Energy Files For Bankruptcy
Cobalt International Energy Inc. filed for bankruptcy protection after it incurred approximately $3,000,000,000.00 in debt. The company’s struggles were reportedly due to a lengthy slump in the exploration and production industry. Additionally, it suffered from several lawsuits concerning its West African business, and unsuccessful sale of its Angola-based operations.
On April 5, 2018, US Bankruptcy Court authorized a third modified fourth amended plan of Cobalt’s reorganization. The amended plan called for securities claims, priority claims, priority tax claims, professional compensation, statutory fees, and administrative claims payment in full. However, the plan confirmed the cancellation of all existing equity interests in Cobalt. As a result, no distribution has been made to equity holders.
As part of the company’s bankruptcy auction, on April 11, 2018, the company accepted $577,900,000.00 in bids for its Gulf of Mexico assets. In that auction, Cobalt accepted a $339,000,000.00 bid from Total SA (NYSE: TOT) and Statoil ASA (NYSE: STO) for 60% of Cobalt’s North Platte discovery interests.
Cobalt International Energy Sued
As of December 5, 2018, a class of investors entered into three settlements resolving a federal class action on behalf of investors who purchased the Cobalt International Energy securities between March 1, 2011 and November 3, 2014. In Re: Cobalt international Energy, Inc. Securities Litigation Case #: 4:14-cv-3428 (NFA).
Soreide Law Group is currently reviewing the potential liability of brokers and their firms who inappropriately sold Cobalt International Energy Inc. investments to conservative investors. If you incurred losses by investing in Cobalt International Energy Inc., connect with Soreide Law Group at (888) 760-6552 to discuss your case with our qualified counsel. Soreide Law Group represents clients nationwide and only charges a fee upon making a recovery of losses.