Thursday, August 9, 2012

Local Oil & Gas Group Files for Bankruptcy After Collecting $10 Million From Investors

From Crain's Cleveland Business:
A local group of oil and gas companies that raised nearly $10 million from investors has filed for bankruptcy and has consented to a judgment from the Securities and Exchange Commission that requires it to pay $4.5 million to the SEC. 
Preferred Financial Holdings Co. of Cuyahoga Heights, its four subsidiaries and the companies' founder and former chief financial officer, Michael A. Bodanza, were sued by the SEC on July 27. The same day, the companies filed for Chapter 11 protection from creditors in the U.S. Bankruptcy Court for the Northern District of Ohio.

The bankruptcy was filed in cooperation with and the full knowledge of the SEC, said Karl May, lead counsel for Mr. Bodanza and the companies, which include the subsidiaries: Preferred Drilling Co., Preferred Financial Investment Co., Preferred Financial Leasing Co. and Preferred Well Management Co. 
“That was a more efficient way to administer the financial affairs of the companies,” Mr. May said. “We are hopeful that we can achieve significant revenues to distribute to the investors.” 
Most of the companies' investors are Northeast Ohioans, Mr. May said.
Read the rest of this article here.

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