The parent company of the local Cook Inlet Energy filed bankruptcy protection paperwork Thursday.
Declining oil prices, low drilling production compounded by an unsuccessful Nikiski well, and the withdrawal of a private lender’s promise of $165 million for restructuring debt were cited by officials for the filing.
In July of this year, Miller Energy CEO Carl Giesler appeased investors during a teleconference.
Giesler: “Although we understand the speculation, we don’t intend to file for bankruptcy, given our current circumstances.”
He still maintains that the company’s agreement with their current lien lender whom owns most of their debt will allow them to clear up most of the problems after restructuring.
In August, charges were filed against the company and three of it’s current and former officials claiming they had inflated the value of the company’s Alaskan properties.
Miller allegedly paid $2.25 million to purchase Alaskan properties along with assuming certain liabilities and later reported the property values at $480 million according to the SEC’s enforcement division.
According to a statement issued about the civil claims on August 6, the U.S. Securities and Exchange Commission alleges the company overstated the value of oil gas properties acquired in Cook Inlet in 2009 by $400 million to increase the company’s net income and total assets.
At this time, Giesler says employees will continue to work, get paid, and shouldn’t expect layoffs.