Miller Energy Resources, Inc. (MILL)
Shares of MILL skyrocketed more than 50% in early trading Wednesday as the company said that it believes its assets have value that exceeds its debt and continue to offer significant opportunities for growth. According to MILL, the Company does not intend, under current circumstances, to file for bankruptcy.
MILL also provided an update on its on-going capital repositioning process as well as its financial and operational position.
On July 10, 2015, MILL signed a non-binding letter of intent with a private financing source for a loan that, if closed, will substantially refinance the company's existing indebtedness. Additionally, MILL has received and is evaluating several proposals that would complement such a primary refinancing. These include a proposal to purchase certain of MILL's non-core assets in a credit-enhancing transaction, to provide potential infrastructure financing and to make a minority equity investment in the Company.
Regarding its liquidity and separate from its capital repositioning process, on June 12, 2015, MILL received from the State of Alaska a tax credit certificate in the amount of approximately $33.0 million. MILL has already received approximately $9.3 million of that amount in cash and expects to receive the remainder in the next few weeks. Furthermore, MILL in March and April applied for an additional approximately $9.4 million in further state tax credits and expects receipt of those funds within the next few months.
MILL expects to file its Form 10-K for full fiscal year 2015 on Wednesday, July 29, 2015.
MILL is an oil and natural gas production and development company focused solely on Alaska.
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