Articles Tagged with Goodrich Petroleum

The law offices of Gana Weinstein LLP are currently investigating brokerage firms that placed investors in oil and gas related investments and who have suffered losses as a result. One company under investigation is oil and gas producer Goodrich Petroleum Corp., (Goodrich) (Stock Symbol: GDP). Goodrich has gone through a number of negative events such as a credit downgrade, the company’s CFO resigned within a year of his predecessor, the chairman of the board announced his retirement for health reasons, and even Henry Goodrich, the company’s founder, has died. According to Bloomberg the company is laden with debt and investors are jockeying for position in a potential bankruptcy.

Recently, investors holding $158.2 million of Goodrich’s debt agreed to take 47 cents on the dollar in exchange for stock warrants for some note holders and a lien on Goodrich’s oil acreage. The purpose of the exchange was to place them in a better position if Goodrich liquidates its assets in bankruptcy.

Our offices continue to report on investment losses suffered by investors in energy and oil and gas related investments that brokerage firms have increasingly recommended to retail investors in recent years. According to Bloomberg, U.S. high-yield debt issued to junk-rated energy companies grew four-fold to $208 billion. Most of these companies are now struggling to stay afloat with oil prices at $45. Investors have been exposed to energy investments through a variety of investment vehicles including private placements, master limited partnerships (MLPs), leveraged ETFs, mutual funds, and even individual stocks.