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ATP Oil & Gas (ATPAQ) Files for Bankruptcy

ATP Oil & Gas

The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments in ATP Oil & Gas (ATPAQ).

ATP Oil & Gas Corporation is a developer and producer of oil and gas in the Gulf of Mexico and the North Sea. Based in Houston, ATP Oil & Gas trades over the counter as ATPAQ; it previously traded on the NASDAQ exchange as ATPG. In 2012, ATP Oil & Gas filed for Chapter 11 bankruptcy, which was later converted to a Chapter 7 proceeding. In 2014, ATPAQ’s Chapter 7 trustee sued the company’s executives, alleging that “the company’s senior management failed to properly plan, budget or take the appropriate proactive action to lessen the company’s damages caused by the Deepwater Horizon oil spill.” The trustee in question, Rodney Tow, asserted that ATPAQ “spent money on long-term projects the company could no longer afford given the impact of the oil spill on ATP’s business. While ATP’s actual and projected cash flow was significantly impacted by the oil spill and foreseeable government response, ATP’s obligations and expenses were not similarly constrained.”

According to Law360, ATP Oil & Gas described assets of $3.6 billion and liabilities of $3.5 billion in its filing for bankruptcy, and more than 90% of its oil wells were in the Gulf of Mexico. According to Tow’s complaint, ATP’s senior management “grossly underestimated” and did not adequately supervise the costs of a floating oil production platform in the Gulf of Mexico and “substantially overestimated the reserve value” of another project. Allegedly, the company “revised its reserve value” for that project “from $702.5 million… $25.5 million,” yet “continued to authorize or ratify substantial transfers of monies” to both projects. He also alleged that ATPAQ’s general counsel breached his fiduciary duty, acted negligently, and committed legal malpractice.

If you have lost money investing in ATP Oil & Gas (ATPAQ), you may be able to recover your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. Fitapelli Kurta takes every case on a contingency basis, which means Fitapelli Kurta only gets paid if and when you collect money. By law there may be a limited window to file your claim, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.