FOR IMMEDIATE RELEASE: Israels & Neuman, PLC Launches Investigation Into BPZ Resources 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 BPZ Resources, Inc. (BPZRQ and/or BPZ) and those who were selling shares of stock in the company.
BPZ Resources, Inc. is a mining company. The Company focuses on the exploration, development and production of oil and natural gas in Peru and Ecuador. Its headquarters are located in Houston, Texas. According to YAHOO! Finance, BPZ Resources filed for chapter 11 bankruptcy on March 9, 2015.
As reported by the Wall Street Journal: “Manolo Zuniga, BPZ’s chief executive, said that the drop in oil prices and the general “industry downturn” made it difficult for the company to refinance its debt.”
On December 10, 2014, BPZ issued a press release stating that “on December 8, 2014, the Company received notification from the New York Stock Exchange (NYSE) that the Company had fallen below the NYSE’s continued listing standard, which requires a minimum average closing price of $1.00 per share over 30 consecutive trading days.”
As of April 22, 2015, the current stock price of BPZ Resources has settled at roughly $0.03 per share. The company is currently trading on the Over the Counter exchange (OTC Markets), having been removed from the New York Stock Exchange. BPZ Resources stock prices have been on a steady decline for at least six years, having been valued at nearly $27.00 per share in 2008, $7.00 per share in 2009, to losing nearly all of its value today. BPZ 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, BPZ’s market capitalization has fallen to only $3.2 million dollars.
It is highly unlikely that any investors in BPZ 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 BPZ Resources, Inc. was extremely risky. If you purchased stock in BPZ 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 clients’ 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 BPZ Resources. Israels & Neuman, PLC represents arbitration clients in all 50 states, including those located in Denver and Seattle.
If you have lost money in an investment in BPZ Resources, Inc., please visit https://www.israelsneuman.com and go to our CONTACT page or call us at 720-599-3505.