Securities Arbitration Lawyers BlogSilver Law Group Investigates Bankrupt Hornbeck Offshore Bonds On Behalf Of Investors
On behalf of investors, Silver Law Group is investigating junk bonds offered by now-bankrupt Hornbeck Offshore Services. Hornbeck Offshore bonds were sold to clients when they held a D rating by Standard and Poor’s, the lowest rating possible.
About Hornbeck Offshore Services
Hornbeck Offshore Services calls itself a “leading provider of marine transportation services to exploration and production, oilfield service, offshore construction and military customers.”
After struggling with low oil prices and significant debt, including debt sold to investors as bonds, Hornbeck filed for bankruptcy. In September, 2020 Hornbeck announced that it had emerged from Chapter 11 bankruptcy and completed a reorganization as a private company with a new board of directors. Investors in Hornbeck bonds lost their money.
What Is A Junk Bond?
A bond is like a loan an investor gives to a company. The investor is paid back their principal plus interest (yield) over time. The amount of interest a bond pays an investor reflects the financial shape of the company and the risk of default. Stable companies with little risk will pay a low interest rate. Companies with lots of debt and an uncertain future will pay a higher interest rate on their bonds to compensate investors for the risk.
Bonds that pay a high interest rate are called “junk bonds” because of the high risk associated with them. Hornbeck Offshore bonds were rated D and considered “junk” because of their high interest rate and risk.
Investors have been experiencing a low interest rate environment for years, and some brokers and financial advisors have recommended junk bonds as a way to earn higher yield than with other investments. However, these junk bonds involve significant risk and are only suitable for investors seeking such risks.
FINRA requires that financial advisors only recommend investments that are suitable for their customers. Recommending purchase of D-rated Hornbeck Offshore bonds is unsuitable investment advice for most investors.
It has been alleged that a financial advisor in St. Augistine, Florida at NTB Financial Corporation sold Hornbeck Offshore bonds, among others.
Recovering Hornbeck Offshore Services Bond Losses
If your financial advisor recommended Hornbeck Offshore bonds, you may be eligible to recover your losses through the FINRA arbitration process, which can be quicker and less expensive than court.
Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. We take most cases on a contingency fee basis, meaning that you won’t owe us anything unless we recover your money for you. Contact us today for a no-cost confidential consultation at (800) 975-4345 or email ssilver@silverlaw.