Did you lose money investing in Pioneer Energy Services Corp. (OTC: PESXQ) Stock and Notes?
Galvin Legal, PLLC is launching an investigation on behalf of investors who suffered losses investing in Pioneer Energy Services Corp. (OTC: PESXQ) Stock and Notes at the recommendation of their financial advisor. If you suffered losses investing in the investment, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim against the brokerage firm that recommended the investment.
As energy prices have declined so has the value of energy investments. Many investors have suffered significant losses in energy investments that were recommended to them by the financial advisor. Many of these investments were high risk and were unsuitable for their portfolios.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
UPDATE 6/2/2020: According to a Uniform Practice Advisory issued by FINRA, Pioneer Energy Services Corp.’s (OTC: PESXQ) joint prepackaged Chapter 11 Plan or Reorganization became effective on 5/29/2020 (Summary details regarding distribution as provided by the plan are provided below for your convenience; however, please consult the debtors Chapter 11 Plan for further details).
On the Effective Date or as soon thereafter as reasonably practicable, all interests in the company shall be cancelled and discharged and shall be of no further force and effect, whether surrendered for cancellation or otherwise, and each holder of an allowed interest in the company shall receive its pro rata share of
- 5.75% of the new equity, subject to dilution by the new equity issued upon conversion of the new convertible bonds (inclusive of the management commitment convertible bonds, the rights offering convertible bonds, and the premium convertible bonds) and the employee incentive plan, and
- subscription rights to acquire $7,084,000 in new convertible bonds (and the corresponding in accordance with the rights offering procedures).
Symbol: PESXQ
Security Description: Common Stock
Distribution of New Common Stock per share of Old Common: 0.0006849838
In addition, on the effective date, or as soon thereafter as reasonably practicable, in full and final satisfaction, compromise, settlement, release, and discharge of and in exchange for each notes claim, each holder of an allowed notes claim shall receive its pro rata share of
- 94.25% of the new equity, subject to dilution by the new equity issued upon conversion of the new convertible bonds and the employee incentive plan, and
- subscription rights to acquire $116,121,000 in new convertible bonds in accordance with the rights offering procedures.
Security Description: 6.125% Senior Note due 3/15/2022
CUSIP: 723664AB4
Distribution of New Common Stock per $1,000 of Original PA: 3.29801667
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires brokerage firms to conduct due diligence on investments, such as Pioneer Energy Services Corp. (OTC: PESXQ) Stock and Notes, and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Brokerage firms that fail to conduct adequate due diligence on investments they recommend, such as Pioneer Energy Services Corp. (OTC: PESXQ) Stock and Notes, or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing in Pioneer Energy Services Corp. (OTC: PESXQ) Stock and Notes and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
