Investors should seek damages after Emergent Capital, Inc. brokers recommended investments that were unsuitable.
Emergent Capital Inc. (EMGC), a specialty finance company, and its wholly-owned subsidiary Red Reef Alternative Investments LLC filed a voluntary petition for Chapter 11 bankruptcy in late 2020. On April 7, 2021, the company announced that it had consummated its restructuring plan.
According to the plan, EMGC moved its operations to its former subsidiary, Lamington Road DAC, an Ireland company, and formed the Lamington Road Guarantor Trust to hold certain securities of Lamington referred to as profit participating notes.
As a result of the restructuring, EMGC’s outstanding securities were deemed canceled. Lamington issued Series A Notes, Series B Notes, and profit participating notes, while the Trust issued the following:
- Holders of Emergent’s 8.5% Senior Secured Notes received Series A Notes of Lamington;
- Holders of Emergent’s 5.0% Senior Unsecured Convertible Notes received Series B Notes of Lamington and trust certificates of the Trust; and
- Holders of Emergent’s common stock and certain common stock equivalents received trust certificates and trust certificate equivalents, respectively.
EMGC intends to wind up its remaining operations and affairs and finalize the liquidation of the company and its remaining United States-based subsidiaries.
Investments in EMGC recommended to clients contained considerable risks, but were nonetheless recommended to conservative investors. If you suffered investment losses after purchasing securities in EMGC, have your case reviewed by a securities attorney.
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The Sonn Law Group is currently investigating allegations that brokers recommended investments in Emergent Capital Inc. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.