INVESTOR ALERT: Kirby McInerney LLP Reminds Investors That a Class Action Lawsuit Has Been Filed on Behalf of Höegh LNG Partners LP (HMLP) Investors and Encourages Investors to Contact the Firm Before December 27, 2021
NEW YORK--(BUSINESS WIRE)--Nov 24, 2021--
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the District of New Jersey on behalf of those who acquired Höegh LNG Partners LP (“Höegh” or the “Company”) (NYSE: HMLP ) securities from August 22, 2019 through July 27, 2021, inclusive (the “Class Period”). Investors have until December 27, 2021 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
Höegh was formed by Höegh LNG Holdings Ltd. (“Höegh LNG”), a leading floating liquefied natural gas (“LNG”) service provider. Höegh’s purported strategy is to own, operate, and acquire floating storage and regasification units (“FSRUs”) and associated LNG infrastructure assets under long-term charters. Höegh has interests in five FSRUs, including the PGN FSRU Lampung based in Indonesia. Through agreements and business structures, Höegh has a 100% economic interest in the PGN FSRU Lampung.
On July 27, 2021, after the market closed, Höegh announced that it had slashed its quarterly common unit distribution by 98% in order to preserve cash to address near-term refinancing issues. Specifically, Höegh disclosed the collapse of the Company’s refinancing plans for its FSRU facility off the coast of Indonesia, after the charterer of the vessel challenged the Company’s new credit facility and the charter agreement with Höegh and announced its intent to commence arbitration to terminate the charter and/or seek damages from the Company. Höegh also announced that its parent company, Höegh LNG, will no longer provide financial support to the Company. On this news, the Company’s share price declined by $11.57 per share, or approximately 64.7%, from $17.87 per share to close at $6.30 per share on July 28, 2021.
The lawsuit alleges throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose: (1) Höegh was facing issues with the PGN FSRU Lampung charter; (2) as a result, the PGN FSRU Lampung charterer would state that it would commence arbitration to declare the charter null and void, and/or to terminate the charter, and/or seek damages; (3) Höegh would need to find alternative refinancing for its PGN FSRU Lampung credit facility; (4) the PGN FSRU Lampung credit facility matured in September 2021, not October 2021 as previously stated; (5) Höegh would be forced to accept less favorable refinancing terms with regards to the PGN FSRU Lampung credit facility; (6) Höegh LNG would not extend the revolving credit line to Höegh past its maturation date; (7) Höegh LNG would reveal that it “will have very limited capacity to extend any additional advances to Höegh beyond what is currently drawn under the facility”; (8) as a result of the foregoing Höegh would essentially end distributions to common units holders; (9) the COVID-19 pandemic was not the sole or root cause of the Höegh’s issues in Indonesia, in 2019, before the pandemic, there were already a very low amount of demand in Indonesia for Höegh’s gas; (10) the auditing, tax, nor maintenance of PGN FSRU Lampung were not the sole or root cause(s) of Höegh’s issues in Indonesia; and (11) as a result, Defendants’ statements about its business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
If you purchased or otherwise acquired Höegh securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: http://www.kmllp.com.
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CONTACT: Kirby McInerney LLP
Thomas W. Elrod, Esq.
KEYWORD: UNITED STATES NORTH AMERICA CALIFORNIA NEW YORK
INDUSTRY KEYWORD: LEGAL PROFESSIONAL SERVICES
SOURCE: Kirby McInerney LLP
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PUB: 11/24/2021 02:05 PM/DISC: 11/24/2021 02:07 PM