Miller Energy Files for Bankruptcy Protection

by San Antonio Attorney

Miller Energy, an oil company mainly operating in Alaska, has filed for bankruptcy protection.

Miller Energy said that the bankruptcy filing became more unavoidable after a private lender withdrew from negotiations for a $165 million financing when the SEC lawsuit was filed.  The energy company also attributed the oil downturn and added pressure from oil field service providers like Schlumberger and Baker Hughes that are asking payment for the work they’ve done.

Miller Energy’s Chief Executive Officer Carl Giesler announced an agreement they have with a lien lender which is the owner of the majority of the debt.  That will help them solve most problems after reorganization.

Giesler says there won’t be a layoff, hence workers will get paid and continue to work.

Miller Energy is also dealing with allegations made by the U.S. Securities and Exchange Commission that the company and some of its officials have overstated the value of its oil and gas properties in Alaska by $400 million.  The alleged scheme had caused the Miller Energy’s stock price to rise from pennies to a $9 per share in the New York Stock Exchange in 2013.  By end of July, trading was suspended. The company said the SEC’s civil action pertains to alleged valuation issues from five years ago and the lawsuit is not validated by facts or the legal system.

The SEC’ aims to get cease-and-desist orders, monetary penalties and the recovery of allegedly dishonestly obtained profits from the company.  Moreover, it s seeking to stop former Miller Energy CFO Paul Boyd and former COO David Hall from their functions as public company directors or officers and to suspend them from public company accounting.

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