Soreide Law Investigating Claims On Behalf Of Exco Resources Inc. (XCOOQ) Investors

Soreide Law Group is investigating claims on behalf of investors who were sold investments in Exco Resources Inc. (OTCMKTS:XCOOQ) a Dallas, Texas based independent natural gas and oil company. Apparently, the company focuses on the exploration, exploitation, acquisition, development and production of onshore natural gas and U.S. oil properties with a concentration in focus on shale resource plays.

EXCO Resources Files Chapter 11 Bankruptcy Petition

EXCO filed a Chapter 11 bankruptcy petition on January 15, 2018 to keep the company afloat. The company claimed that the court-supervised reorganization was intended to facilitate the restructuring of EXCO’s balance sheet. Apparently, EXCO is pursuing various avenues to benefit its shareholders. Particularly, it was reported by the company in January 2018 that all of its assets could be sold pursuant to the reorganization or Section 363 of the Bankruptcy Code. Evidently, a number of motions have been filed by EXCO in connection with the Chapter 11 filing. Those motions seek court authorization for supporting its operations.

Apparently, the bankruptcy filing comes after the already struggling company’s turnaround expert resigned in November 2017. When that happened, EXCO reported that it possibly would turn to the United States Bankruptcy Code to seek protection from its creditors. The President and Chief Executive Officer of EXCO, Harold Hickey, cited uncertainty in the energy market and a sustained downturn in commodity prices as the cause of the negative impact on the company’s financial position.

At the time of the Chapter 11 filing, Hickey revealed that the company took action to mitigate the impact to shareholders. This apparenlty included divesting assets, restructuring EXCO’s balance sheet, reducing costs, and renegotiating commercial contracts. However, EXCO has continued to face liquidity pressures.

Private Placement Investors Face Risks Of Being Fleeced By Brokers

EXCO is one of many oil and gas companies to incur drastic losses because of the decline in commodities prices and oil costs. A major concern for investors arises from the inability of oil and gas limited partnerships to make distributions. On top of that, investors often face problems by purchasing securities in companies like EXCO through private placements. Particularly, private placements are often sold by disingenuous and corrupt issuers and promoters, and pushed by shady brokers. Because of private placements being exempt from regulations and registration requirements imposed by the Securities and Exchange Commission (“SEC”), there is a greater level of risk of investors being fleeced.

Additionally, lofty commissions and fees have been earned by brokers selling private placements. There are substantial monetary incentives for brokers selling private placements. Because of this, brokers sometimes sell investments such as EXCO to investors without disclosing the risks. Furthermore, brokers sometimes fail to ensure that the investments are suitable for investors. As a result of broker misconduct, many investors have suffered drastic losses.

The 52-week high for XCOOQ common stock is $0.74. As of December 18, 2018; however, XCOOQ closed at $0.040 – a 95% drop.

Suffered Losses By Investing In Exco Resources (XCOOQ)?

Lars Soreide Highest Ethical Standard Award 2018

Lars Soreide Highest Ethical Standard Award 2018

Energy investments are widely considered some of the most speculative investments. Consequently, Soreide Law Group is currently reviewing the potential liability of brokers and their firms who have inappropriately sold EXCO investments to investors. If you incurred losses by investing in XCOOQ, contact 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.