According to a Denver Post article published on March 23, 2016, Emerald Oil Inc. has filed for Chapter 11 bankruptcy. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments in Emerald Oil.
According to Yahoo! Finance, Emerald Oil is an independent oil and gas natural exploration company headquartered in Denver, Colorado. It trades on the New York Stock Exchange under EOX. The company “designs, drills, and operates oil and natural gas wells,” and “primarily focuses on acquiring acreage and developing oil and natural gas wells in the Williston Basin located in North Dakota and Montana. As of December 31, 2014, the company controlled the rights to mineral leases covering approximately 122,000 net acres. It also participates in the drilling of oil and natural gas wells operated by other companies. The company was formerly known as Voyager Oil & Gas, Inc. and changed its name to Emerald Oil, Inc.”
According to the Denver Post, EOX is one of several Colorado energy companies to seek bankruptcy protection in recent months. Others include Craig Energy, Escalera Resources, Venoco Inc. and American Eagle. A Deloitte Center For Energy Solutions report published in February states that “nearly 35 percent of the world’s exploration and production companies are at high risk for bankruptcy,” according to the Post.
Emerald Oil’s president and chief executive officer, McAndrew Rudisill, said in a released statement: “The plan we are announcing today will provide for continuity in Emerald’s current and future business operations… This process is the only path going forward and should enable the business to execute a turnaround in the current low oil price environment.”
Emerald Oil is reportedly seeking to be purchased by Latium Enterprises, Inc., which also operates in England and New York. The Post reports that EOX, in its bankruptcy filing, reported “debts in the range of $100 million to $500 million.” Its biggest creditor appears to be US Bank, which has a “claim of $148.5 million for the company’s credit facility, which Emerald defaulted on earlier this year.”
EOX has also announced the company acquired “$20 million in debtor-in-possession financing, which, if approved by the court, would provide the company with enough cash to continue operating through the Chapter 11 process.”
If you have lost money investing in Emerald Oil (EOX), call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. You may be entitled to recover lost funds. All cases are taken on contingency: we only receive payment if and when you collect money. Time to file your claim may be limited, so we suggest you avoid delay. Call 877-238-4175 now to speak to an attorney for free.