Miller Energy Resources Inc. (MILL) said Oct. 1 that it and certain of its subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the District of Alaska.

Miller Energy has agreed upon a term sheet with Apollo Investment Corp. and certain affiliates of Highbridge Capital Strategies for a comprehensive financial restructuring.

The Houston company said it hopes the restructuring will substantially reduce its debt, provide a long-term solution for its balance sheet, enable it to operate with minimal disruption and loss of productivity, and protect and preserve its going-concern value for all stakeholders.

The Chapter 11 cases were filed pursuant to a term sheet setting forth a proposed plan of reorganization and a debtor-in-possession (DIP) loan facility of up to $20 million.

As it proceeds with its financial restructuring, the company expects, based on current commodity prices, that its cash on hand and cash from operating activities coupled with its expected state cash tax credit receipts and its DIP facility of up to $20 million will be adequate to fund its projected cash needs. This includes the ongoing and timely payment of operating costs and expenses.

The company has a substantial acreage, reserve, and resource position in Alaska, significant midstream and rig infrastructure to support production, and 100% working interest in and operatorship of most of its assets.

The company began its previously-disclosed capital repositioning process in March 2015 in order to stabilize its financial position, improve its balance sheet and maximize the value of its assets for all stakeholders.

Seaport Global Securities is the company's financial adviser. Andrews Kurth LLP is its legal counsel.