April 3, 2016 Comments (0) Blog, Current Investigations

Update: Miller Energy Resources

(Last Updated On: September 7, 2016)

Have you suffered losses investing in Miller Energy Resources? If so, the securities attorneys of The White Law Group may be able to help you recover your losses in a FINRA arbitration claim against the brokerage firm that recommended the investment.

Miller Energy Resources is an oil and natural gas production company focused on Alaska.  According to their website, “The Company has a substantial acreage, reserve, and resource position in the State, significant midstream and rig infrastructure to support production, and 100% working interest in and operatorship of most of its assets.”

The bankruptcy case for former Knoxville-based company Miller Energy Resources came to a close on April 1st.  with the company reorganized into separate entities, its stock declared void and a plan in place to issue new common stock.

Meanwhile, Miller Energy is facing a lawsuit by shareholders seeking class-action status for all purchasers of certain Miller preferred shares.

March 29 was the date for a reorganization plan approved by a U.S. Bankruptcy Court in Anchorage, Alaska, for Miller Energy to take effect. Under the plan, the company will establish a new board of directors empowered to adopt any agreements or documents, or take any actions outlined in the plan. The company will continue but as separate entities represented by its 11 subsidiaries.

In  filings with the Security and Exchange Commission, the company reported that under the agreement with the court, all shares of Miller Energy common stock and other equity and securities are terminated. In a form 8-K filing, the company said that the reorganized company had secured up to $20 million in exit financing with Apollo Investment Corp., plus an extra $20 million in incremental term loan financing.

Also on March 29, the reorganized company issued 10 million shares of new common stock, at $0.0001 per share to the secured lenders. Apollo Investment Corp. and other investment funds managed by Highbridge Principal Strategies hold 100 percent of the new notes and new common stock, and therefore control the company, according to the 8-K filing.

For more information on The White Law Group’s investigation of Miller Energy Resources, click here.

Oil and gas investments are generally speculative and can be very high risk ventures. Even bonds in the oil and gas industry, which many investors think of as “safe,” are not without risk.

When recommending investments to clients, brokers have a responsibility to adequately disclose the risks associated with the investment. Brokers also have a duty perform the necessary due diligence to determine suitable investments that are inline with the client’s net worth, investment experience and objectives.

Brokers that overlook suitability standards or fail to disclose pertinent investment information they may be liable for investment losses. The White Law Group is investigating the liability some brokers may have for recommending Miller Energy Drilling 2009-A, LP. and Miller Energy Income 2009-A, LP.

To determine whether you may be able to recover investment losses incurred in Miller Energy Resources please contact The White Law Group at 888-637-5510.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.