Black Elk Energy Offshore Operations Files a Chapter 11 Plan of Liquidation

Soreide Law Group recently has filed lawsuits on behalf of our clients against brokers/financial advisors for recommending the purchase of Black Elk Energy Offshore Operations, LLC.
On April 12^th., 2016, Black Elk Energy Offshore Operations filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Liquidation and related Disclosure Statement.
The Disclosure Statement reads in part, “The purpose of the Plan is to provide for the orderly wind-down of the Debtor’s operations, the liquidation of the Debtor’s assets, the satisfaction of the Debtor’s environmental liabilities, and the orderly distribution of the Debtor’s remaining assets to creditors. The Plan contemplates the creation of two trusts, the Litigation Trust and the Liquidation Trust, into which all of the Debtor’s assets will be transferred. On the Effective Date, the Debtor will transfer the Litigation Trust Assets to the Litigation Trust, and transfer the Debtor’s remaining assets, defined in the Plan as the Liquidation Trust Assets, to the Liquidation Trust.”
Black Elk Energy Offshore Operations LLC, began to unravel after three workers died in a 2012 explosion on one of its rigs. Black Elk reportedly spent millions in costs related to the fatal incident.  Then, oil prices collapsed.
Black Elk Energy Offshore Operations, LLC is engaged in the acquisition, exploitation, and development of oil and natural gas properties. The company has producing assets located offshore in U.S. federal waters, and Louisiana and Texas state waters in the Gulf of Mexico. As of December 31, 2013, it held an aggregate net interest in approximately 223,852 net acres under lease, as well as had an interest in 113 gross wells. The company also had estimated total proved oil, natural gas, and NGL reserves of 26 MMBoe. Black Elk Energy Offshore Operations, LLC sells its natural gas and oil to marketing companies and refineries. The company was founded in 2007 and is headquartered in Houston, Texas. On August 11, 2015, an involuntary petition for liquidation under Chapter 7 was filed against Black Elk Energy Offshore Operations, LLC in the U.S. Bankruptcy Court for the District of Texas. On September 1, 2015, the involuntary petition was approved by the Court and the Chapter 7 petition was converted to Chapter 11 reorganization.
Black Elk Energy Offshore Operations, LLC filed a plan of liquidation with related disclosure statement in the US Bankruptcy Court on April 12, 2016. Note holder DIP secured claim of $3.5 million and Argonaut DIP secured claim of $3.5 million shall be paid in full satisfaction by way of a DIP exit facility. Senior notes claim of $68.57 million shall be allowed in full and shall receive senior liquidated trust interest in full satisfaction. Other secured claims and general unsecured creditors shall be entitled to receive pro rata share distributions from the litigation trust. All the Interests in the debtor shall be cancelled and shall receive no distribution under the plan. The plan shall be funded from debtor’s cash in hand, liquidation of debtor’s assets and exit facility.

If you've suffered losses due to your broker or financial advisor's recommendations in the oil and gas stock, Black Elk Energy Offshore Energy Operations, LLC, call Soreide Law Group for a no-cost consultation with an attorney: 888-760-6552.