id Your Financial Advisor Recommend Hornbeck Offshore Services (HOS, HOSSQ)?
Soreide Law Group is reviewing possible investor lawsuits against financial advisors and securities brokers who may have wrongfully sold investments in Hornbeck Offshore (OTC: HOS, HOSSQ). Notably, on May 19, 2020, the Covington, Louisiana-based company filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas.
Who Is Hornbeck Offshore?
Apparently, Hornbeck is an innovator in the expanding deepwater oil field marine service industry. The company claims to be a leading provider of marine transportation services to exploration and production, oilfield service, offshore construction and military customers. It appears that Hornbeck operates its OSVs in the Gulf of Mexico and abroad.
Hornbeck Files For Bankruptcy After Financial Pressures Mount From COVID-19, Oil Price Declines
Evidently, Hornbeck filed for Chapter 11 bankruptcy protection on May 19, 2020. The move comes after president and Chief Executive Officer, Todd M. Hornbeck, chalked the company’s struggling performance up to COVID-19 and declining oil prices. As of the close of business on May 22, 2020, HOSSQ shares were valued at $0.012 – a 99% drop from its 52-week high of $1.47.
Supposedly, the company plans to execute a pre-packaged restructuring agreement with lenders as per an arrangement reached last month. As part of the agreement, existing creditors are slated to provide a $75,000,000 debtor-in-possession term loan facility. Also, the company is expecting to use cash from operations and cash on hand to sustain somewhat normal operations including payments to employees. Moreover, after emerging from bankruptcy, Hornbeck is anticipating having access to $100,000,000 in capital via a common stock rights offering.
Brokers, Advisors Possibly Sold Bad Notes
Securities brokers and financial advisors are responsible for ensuring that the investments they recommend are suitable for investors. This necessitates due diligence by the broker or financial advisor not just on the investor but also on the recommended investments. Moreover, it is incumbent upon these financial professionals to disclose risks and other details about recommended investments. With all of the turmoil facing the energy sector these days, it is normal for investors who experienced losses to question whether it was appropriate for their brokers or advisors to have recommended investments like Hornbeck to them.
Losses By Investing In Hornbeck?
Have you experienced losses because of purchasing Hornbeck securities 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 brokers and financial advisors.