FOR IMMEDIATE RELEASE: Israels & Neuman, PLC Launches Investigation Into Quicksilver Resources, Inc. Bankruptcy Filing
Israels & Neuman, PLC, is a securities fraud law firm with offices in Denver and the Seattle-area. We hereby announce that we have launched an independent investigation into the bankruptcy filing of Quicksilver Resources, Inc. (KWKAQ, KWKA, and/or KWK) and those who were selling shares of stock in the company.
Quicksilver Resources Inc., an independent oil and gas company, is engaged in the acquisition, exploration, development and production of onshore oil and natural gas in North America. Its headquarters are located in Fort Worth, Texas. According to the Wall Street Journal, Quicksilver Resources Inc. filed for chapter 11 bankruptcy on March 14, 2015.
As reported by the Wall Street Journal: “Quicksilver’s strategic marketing process has not produced viable options for asset sales or other alternatives to fully address the company’s liquidity and capital structure issues,” the Fort Worth, Texas-based company’s chief executive, Glenn Darden, said Tuesday.”
On January 8, 2015, Quicksilver Resources, Inc. issued a press release stating that “that the company received notification from the New York Stock Exchange (the “NYSE”) that the NYSE had determined to commence proceedings to delist the company’s common stock in view of its low trading price, and trading in the company’s common stock was suspended immediately. The company had previously disclosed that, on October 9, 2014, the NYSE had notified the company that the 30-trading-day average closing price of the company’s common stock had fallen below $1.00 per share, the minimum average share price required for continued listing of the company’s common stock on the NYSE under Rule 802.01C of the NYSE Listed Company Manual. Quicksilver Resources does not intend to appeal the delisting determination.”
As of April 23, 2015, the current stock price of Quicksilver Resources stock has settled at roughly $0.03 per share. Quicksilver Resources stock prices have been on a steady decline since 2010, having been valued roughly $15.00 per share in 2010, $3.00 per share in 2009, to losing nearly all of its value today. Quicksilver is considered a micro-cap stock due to the fact that its current market capitalization is less than $300 million. In fact, as of April 22, 2015, Quicksilver’s market capitalization has fallen to only $5.5 million.
It is highly unlikely that any investors in Quicksilver Resources will receive any meaningful recovery from the bankruptcy proceeding, due to what is known as the “Absolute Priority Rule,” which prohibits distributions to equity investors, prior to full repayment of creditors of higher “priority.”
An investment in Quicksilver Resources, Inc. was extremely risky. If you purchased stock in Quicksilver Resources, Inc. on the advice of a financial advisor or stockbroker, you may be able to bring a claim for your losses through FINRA arbitration. This is because financial advisors have a duty to disclose risks associated with these types of investments and must ensure that their client’s portfolios are adequately diversified, so that the investor’s portfolio is not completely wiped out in the event of a downturn.
Aaron Israels and David Neuman are experienced securities arbitration attorneys and have represented investors in recovering their investments in micro-cap oil stocks, including some who invested in companies very similar to QuickSilver Resources. Israels & Neuman, PLC represents arbitration clients in all 50 states, including those located in Denver and Seattle. Our primary practice is representing victims of investment fraud.
If you have lost money in an investment in Quicksilver Resources, Inc., please visit https://www.israelsneuman.com and go to our CONTACT page or call us at 720-599-3505.