Investors Could Have Sustained Big Losses On Monitronics Bankruptcy

Soreide Law Group is reviewing potential investor disputes against financial advisors, securities brokers and firms including National Securities Corp who may have improperly recommended Monitronics Escrow Bond among other Monitronics investments. Evidently, Monitronics International, Inc. emerged from Chapter 11 bankruptcy in 2019, eliminating $900,000,000.00 in debt. A number of its investors could have experienced significant losses because of its bankruptcy. Here’s more:

Who is Monitronics International?

Monitronics International d/b/a Brinks Home Security is a wholly owned subsidiary of Ascent Capital Group, Inc. (OTC: ASCMA, ASCMB) that is in the business of providing alarm monitoring services and security and protection software to customers in the United States, Canada and elsewhere. The company is headquartered in Farmers Branch, Texas and employs about 1,085 people.

Monitronics Bankruptcy Allows It To Eliminate Nearly $900,000,000 In Debt

Evidently, in May 2019, Monitronics announced a Restructuring Support Agreement with its biggest creditors. The terms included the conversion of at least $685,000,000 from debt to equity. That included $585,000,000 in Senior Notes paying 9.125% due April 1, 2020. On August 8, 2019, the United States Bankruptcy Court for the Southern District of Texas confirmed a prepackaged plan of reorganization for Monitronics and its subsidiaries.

On August 30, 2019, Monitronics emerged from Chapter 11 protection in which it eliminated almost $900,000,000 in debt and had merged with Ascent Capital Group Inc. The company noted that its largest shareholders would be EQT Credit and Brigade Capital Management. Upon emergence, the company was also able to access $295,000,00 in additional liquidity through a $150,000,000 term loan facility and a $145,000,000 revolving facility. Following the bankruptcy, shares of Monitronics began trading in the OTC markets under OTCMKTS: SCTY. Shares were priced at $3.40 as of June 30, 2020.

Advisors Possibly Sold Unsuitable, Misrepresented Bonds To Investors

It is possible that financial advisors provided bad investment advice about Monitronics Escrow Bond. This investment may not have been consistent with investors’ objectives, risk tolerances and needs. Not surprisingly, financial professionals are responsible for recommending only those investments which match their clients’ suitability profiles. Also, securities brokers and financial advisors may have misrepresented risks of Monitronics Escrow Bond or other investments.

Losses On Monitronics Investments?

Lars Soreide AVVO 2020 Top Lawyer

Have you experienced losses because of purchasing Monitronics Escrow Bond from your broker or financial advisor? 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 law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of securities brokers and financial advisors.