Soreide Law Group is investigating claims on behalf of investors who were advised by their broker to purchase Vanguard Natural Resources Inc. (OTCMKTS: VNRR), a company headquartered in Houston, Texas concentrating on acquiring, producing and developing oil and natural gas properties.
The oil and gas company went through a Chapter 11 bankruptcy organization in 2017, citing a highly leveraged capital structure using bank loans. Since the restructuring, the company has continued to encounter significant debt problems. In fact, the company’s debt is estimated at $655,000,000.00, and liquidity is approximately $39,100,000.00. Moreover, Vanguard Natural Resources has reported a $32,100,000.00 net loss for the third quarter of 2018.
Because of Vanguard Natural Resources’ current financial state, the company is at risk of defaulting on its outstanding loans. The company indicated that its possible failure to comply with credit terms is due to current commodity prices. Apparently, the company is negotiating with banks to get those credit terms amended.
Vanguard Natural Resources has reportedly made efforts to sell assets and use the proceeds to pay its existing obligations. In 2018, the company apparently sold $105,000,000.00 in non-core assets to reduce its debt. The company’s Chief Financial Officer, Ryan Midgett, stated that the firm’s divestment efforts are a “critical step.”
Vanguard Natural Resources stated that lenders will be able to pursue a number of remedies against the company if it defaults on its loan obligations. Those remedies include lenders’ adjusting the timing of debt repayments. However, the company stated that pressure from lenders could negatively affect the company’s operations and ability to address obligations. Indeed, the company revealed that those conditions could place the company in jeopardy of failing in as early as a year.
The 52-week high for VNRR common stock is $20.50. As of December 18, 2018, VNRR closed at $2.25. That is, VNRR stock has plummeted 89% since January 26, 2018.
Soreide Law Group is examining possible claims on behalf of investors who have not been fully informed of the risks inherent in oil and gas company investments, including Vanguard Natural Resources. Additionally, Soreide Law Group is reviewing the possible liability of brokers and their firms who have inappropriately sold VNRR oil and gas investments to investors. Particularly, these risky investments may have been sold to investors with more conservative investment objective and risk tolerances who.
If you incurred losses by investing in VNRR, 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.
Recently Passco Palm Desert issued K-1’s to their investors for Cancellation of Debt Income. This tax bill will be in addition to the losses suffered by the investors for the failed Passco Palm Desert Investment. When canceled debt is taxable: If you do not qualify for an exception or exclusion, you must report the canceled […]
Soreide Law Group is reviewing potential claims from investors who may have been harmed by the way securities brokers and financial advisors marketed and sold certain investment products. One investment drawing attention is WALK DST, a Delaware Statutory Trust offered to investors nationwide. Concerns have surfaced that raise important questions about this investment’s risks and […]
Soreide Law Group is reviewing potential investor claims tied to possible sales practice violations by securities brokers and financial advisors. One of the products under review is VINTAGE DST, a Delaware Statutory Trust connected to real estate investments. This offering has drawn attention because of serious concerns investors should be aware of. The following overview […]
Phone:
Fax: 1-954-760-6553
Email: info@securitieslawyer.com