Black Elk Energy
When you look at Black Elk Energy, based out of Houston, things are a bit more sinister. This was a very complex Chapter 11 bankruptcy.
In 2013, they were charged with 41 citations for violations. These were connected to the fatal West Delta 32 oil rig explosion that occurred in 2012. Three contract workers died in that incident and oil was spilled into the Gulf of Mexico.
Black Elk’s CEO left the company in August 2014. He started a new oil company, which is not considered a going concern at this point.
In December 2016, an indictment came for Black Elk, and it’s New York parent company, Platinum Partners. They were indicted for mishandling their hedge fund. Platinum Partners overvalued company assets. This was in an attempt to keep and grow investments in Black Elk, and its sister company Northstar GOM Holdings Group.
It is likely that shareholders will lose everything before this is settled. Black Elk has a long history of corporate shenanigans that have attempted to take money out of shareholder’s pockets, and put it into their own coffers. Mismanagement, citations, fines, and indictments continue to plague this company.