The company said that independent auditors’ opinion included in Blueknight’s 2009 financial statements and the 2009 10-K contains a “going concern” modification, disclosing that Blueknight has “substantial long-term debt, a deficit in partners’ capital, significant litigation uncertainties, and other
issues, which raise substantial doubt about its ability to continue as a going
concern.”
“We are making steady progress with our transition and generating new business from third parties to replace the business lost from the Partnership’s former parent company,” said James Dyer, Blueknight’s CEO.
“We recognize that we continue to face challenges relating to rebuilding the business,” he added.
Blueknight reported a net loss of $5.64 million for the October-December 2009 period, compared with a loss of $1.73 million in the corresponding three months in 2008.
Late November last year, major trading house Vitol completed its purchase of a controlling interest in SemGroup Energy Partners LP (SGLP), which was a subsidiary of the bankrupt SemGroup LP. It was renamed Blueknight Energy Partners to distance itself from the SemGroup LP.
Blueknight owns and operates a total oil storage capacity of 15 million bbl, and 1,280 miles of pipelines.
It also has 46 liquid asphalt cement terminals and storage facilities.