Bernstein Liebhard LLP Investigates Claims on Behalf of Those Who Invested in Willbros Group, Inc.
March 18, 2015
Bernstein Liebhard LLP is investigating whether Willbros Group, Inc. (“Willbros” or the “Company”) (NYSE: WG) issued materially false and misleading statements to investors in violation of the federal securities laws.
Willbros is a specialty energy infrastructure contractor serving the oil, gas, refinery, petrochemical and power industries. On March 17, 2015, after the market closed, Willbros announced that it did not expect to be in compliance with its maximum leverage ratio and minimum interest coverage ratio for the period from March 31, 2015 through March 31, 2016. Without a definitive waiver or amendment, all indebtedness under Willbros’ credit agreements would become due in the next twelve months. The Company stated that if its debt became accelerated and the lenders demanded repayment, there would be substantial doubt about its ability to continue as a going concern.
The Company also stated that it had determined that a material weakness existed at December 31, 2014 relating to the assessment of significant risks and uncertainties associated with its ability to comply with financial covenants contained in its credit agreements, and over the assessment of its ability to meet its liquidity and capital resource needs for a reasonable period of time. Willbros attributed this material weakness primarily to its failure to reflect certain business conditions timely and adequately in its forecast process. Willbros also announced that it would not be able to timely file its annual report.
On March 18, 2015, Willbros linked its liquidity problems to the downturn in its oil-and-gas business, reiterating that credit defaults would raise doubts about its ability to continue as a going concern. After this announcement, Willbros shares went into free fall – plummeting almost 70% in early morning trading.
If you invested in Willbros and lost money and are interested in discussing your rights and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or email@example.com.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.