NEW YORK, Nov. 28, 2012 /PRNewswire/ -- Harwood Feffer LLP ( www.hfesq.com) is investigating potential claims against the board of directors of Hi-Crush Partners LP ("Hi-Crush" or the "Company") (NYSE: HCLP), concerning whether the board has breached its fiduciary duties to shareholders.
Hi-Crush went public on August 16, 2012. The Company's Registration Statement and Prospectus issued in connection with the IPO disclosed that the Company relied on four major customers for a large part of its business. One of the large customers was a company called Baker Hughes. The IPO documents stated that due to the presence of long-term supply contracts with four large customers, Hi-Crush boasted "long-term cash flow stability."
However, beginning in February 2012, Baker Hughes had expressed unwillingness to comply with its contract, and that it had demanded significant concessions from Hi-Crush. At the time, Hi-Crush believed that Baker Hughes was in violation of certain provisions in the original contract. Although there was reason to believe that the Company's relationship with one of its primary customers was in jeopardy, the IPO documents were never amended to same and shareholders had no way of knowing that the Company's "long-term cash flow stability" was now in doubt.On November 13, 2012, the truth began to be revealed when Hi-Crush disclosed that the Company had formally terminated its supply agreement with Baker Hughes and that litigation would result. On this news, Hi-Crush shares dropped over 25% in one day. Our investigation concerns whether the Hi-Crush's board of directors has breached its fiduciary duties to shareholders, grossly mismanaged the Company, and/or committed abuses of control in connection with the foregoing. If you own Hi-Crush shares and wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact: