NEW YORK, November 24, 2021– (BUSINESS WIRE) – Law firm 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 HÃ¶egh LNG Partners LP (“HÃ¶egh “or the securities of the” Company “(NYSE: HMLP) from August 22, 2019 to July 27, 2021 inclusive (the” Class Period “). Investors have until December 27, 2021 to apply to the Court for appointment. principal plaintiffs in the trial.
HÃ¶egh was formed by HÃ¶egh LNG Holdings Ltd. (âHÃ¶egh LNGâ), a leading provider of liquefied natural gas (âLNGâ) floating services. HÃ¶egh’s purported strategy is to own, operate and acquire Floating Storage and Regasification Units (âFSRUsâ) and associated LNG infrastructure assets under long-term charter. HÃ¶egh holds interests in five FSRUs, including the PGN FSRU Lampung based in Indonesia. Through agreements and business structures, HÃ¶egh holds a 100% economic interest in the PGN FSRU Lampung.
On July 27, 2021, after the market closed, HÃ¶egh announced that it had reduced its quarterly distribution of ordinary shares by 98% in order to preserve liquidity to deal with short-term refinancing problems. Specifically, HÃ¶egh revealed the collapse of the company’s refinancing plans for its FSRU facility off the coast of Indonesia, after the ship’s charterer challenged the company’s new credit facility and dealer’s agreement. charter with HÃ¶egh and has announced its intention to enter into arbitration to terminate the charter and / or claim damages from the Company. HÃ¶egh also announced that its parent company, HÃ¶egh LNG, will no longer provide financial support to the Company. Following this news, the Company’s share price fell by $ 11.57 per share, or approximately 64.7%, from $ 17.87 per share to close at $ 6.30 per share on the 28th. July 2021.
The lawsuit alleges throughout the Class Period, the Defendants made false and / or misleading statements and / or failed to disclose: (1) HÃ¶egh was facing problems with the PGN FSRU Lampung charter; (2) accordingly, the PGN FSRU Lampung the charterer would declare that he would initiate arbitration to declare the charter null and void, and / or to terminate the charter, and / or to claim damages; (3) HÃ¶egh would need to find alternative refinancing for his PGN FSRU Lampung credit facility; (4) the PGN FSRU Lampung the credit facility matured in September 2021, and not in October 2021 as previously indicated; (5) HÃ¶egh would be forced to accept less favorable refinancing conditions with regard to the PGN FSRU Lampung credit facility; (6) HÃ¶egh LNG would not extend the revolving credit line to HÃ¶egh beyond its maturity date; (7) HÃ¶egh LNG would reveal that it “will have a very limited capacity to extend further advances to HÃ¶egh beyond what is currently fired as part of the facility”; (8) as a result of the foregoing, HÃ¶egh would essentially terminate distributions to ordinary unitholders; (9) the COVID-19 pandemic was not the only or the root cause of HÃ¶egh’s problems in Indonesia, in 2019, before the pandemic, there was already a very low demand in Indonesia for HÃ¶egh’s gas; (10) the audit, taxation, nor the maintenance of PGN FSRU Lampung were not the only cause (s) of HÃ¶egh’s problems in Indonesia; and (11) as a result, the Defendants’ statements regarding its business, operations and prospects were materially false and misleading and / or lacked reasonable basis at all relevant times. When the real details entered the market, the lawsuit claims that investors have suffered damage.
If you have purchased or acquired securities of HÃ¶egh, have any 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 [email protected] , or by completing this contact form, to discuss your rights or interests with respect to these matters at no cost to you.
Kirby McInerney LLP is a New York law firm specializing in securities, antitrust, whistleblower and consumer litigation. The company’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the company is available on the Kirby McInerney LLP website: http://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.