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, Nov. 24, 2021 – (BUSINESS WIRE) – Law firm Kirby McInerney LLP announces that a class action lawsuit has been filed in the US District Court for the New Jersey District 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 for appointment as the lead plaintiff in the litigation.
Höegh was acquired by Höegh LNG Holdings Ltd. (“Höegh LNG”), a leading supplier of floating liquefied natural gas (“LNG”), was founded. Höegh’s alleged strategy is to own, operate and acquire floating storage and regasification units (“FSRUs”) and associated LNG infrastructure facilities under long-term charter. Höegh is involved in five FSRUs, including PGN FSRU Lampung based in Indonesia. Höegh has a 100% economic interest in PGN FSRU Lampung through agreements and business structures.
On July 27, 2021, after the market closed, Höegh announced that it had cut its quarterly ordinary share payout by 98% to save cash for short-term refinancing problems. In particular, Höegh announced 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 charter agreement with Höegh and announced its intention to initiate arbitration to terminate the charter and / or claim damages from the company. Höegh also announced that its parent company Höegh LNG will no longer support the company financially. As a result of this news, the company’s stock price fell $ 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 that defendants made false and / or misleading information during the class action period and / or failed to disclose: (1) Höegh had problems with the PGN FSRU Lampung Charter; (2) as a result, the charterer would declare to PGN FSRU Lampung that he would initiate arbitration to invalidate the charter and / or terminate the charter and / or seek damages; (3) Höegh would need to find an alternative refinancing for its PGN FSRU Lampung credit facility; (4) the PGN FSRU Lampung credit facility matured in September 2021, not October 2021 as noted above; (5) Höegh would be forced to accept less favorable refinancing terms in relation to the PGN FSRU Lampung credit facility; (6) Höegh LNG would not extend Höegh’s revolving credit line beyond the due date; (7) Höegh LNG would disclose that it “will have very limited capacity to extend additional advances to Höegh beyond what is currently drawn under the Facility”; (8) as a result of the foregoing, Höegh would substantially terminate distributions to holders of common shares; (9) the COVID-19 pandemic was not the only or fundamental cause of Höegh’s problems in Indonesia, in 2019, before the pandemic, there was already very little demand for Höegh gas in Indonesia; (10) The testing, taxation, or maintenance of PGN FSRU Lampung were not the only or primary cause (s) of Höegh’s problems in Indonesia; and (11) as a result, Defendants’ statements about its business, operations and prospects were materially false and misleading and / or were inadequate at all relevant times. When the real details hit the market, the lawsuit claims that investors have suffered damage.
The story goes on
If you have 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 research @ kmllp. com or by filling out this contact form to discuss your rights or interests in relation to these matters at no cost to you.
Kirby McInerney LLP is a New York based law firm focused on securities, antitrust, whistleblower and consumer disputes. The company’s efforts on behalf of shareholders in securities disputes have resulted in total returns of billions of dollars. For more information about the company, please visit the Kirby McInerney LLP website: http://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.