HOUSTON – Two investment firms recently sued Daybreak Oil and Gas Inc. in Harris County District Court for purportedly violating an agreement among the three entities.
Chiron Financial LLC and SSG Advisors, LLC filed the breach of contract lawsuit on Nov. 17, asserting they are owed about $1.1 million.
Recent court documents show that the parties began their relationship in May 2015. Daybreak agreed that Chiron and SSG were to provide it investment banking services in exchange for compensation as part of their engagement agreement, which was renewed twice.
Aside from serving Daybreak, the suit explains, the plaintiffs also communicated with Maximilian Resources, LLC; Platinum Partners, LP; and New York City-based portfolio manager Zach Weiner, who are co-defendants in the case.
Per the suit, the most recent engagement agreement is still active and Daybreak missed three months of payments. The complainants further assert that Daybreak and Weiner held separate discussions about restructuring options without their knowledge.
Daybreak and Maximilian allegedly sold a large part of the former’s assets to another company to which the plaintiffs say constituted a breach of the engagement agreement. The complainants learned of the transaction through a press release from Daybreak, the original petition says.
Attorneys Patrick L. Hughes and Veronica D. Cruz of the law firm Haynes and Boone, LLP in Houston are representing the plaintiffs.
Harris County 215th District Court Case No. 2016-79687