Yuma Energy has submitted for Chapter eleven personal bankruptcy safety in the U.S. Personal bankruptcy Court docket for the Northern District of Texas. The enterprise explained its money situation deteriorated in the 1st quarter of 2020 and its money circulation from operations was no longer ample to go over its running fees.
It was trying to find court docket approval to maintain an auction “for considerably all” of its property, it explained. The auction is envisioned to come about in the 1st ninety days of the personal bankruptcy. The property are mostly attributes in Louisiana, Texas, Wyoming, and Oklahoma.
Yuma explained it may well negotiate for new debtor-in-possession financing but was not sure those negotiations would be successful. The enterprise strategies to continue to work its business in the standard course through the personal bankruptcy course of action.
“Our revenues and money situation have eroded to the stage of unsustainability mostly pushed by the serious downturn in oil prices,” the company’s previous CEO and CFO, Anthony Schnur, explained in a assertion. “After substantially thing to consider, the company’s Board of Directors arrived to the determination that the use of the Chapter eleven liquidation course of action was the greatest path ahead to optimize values and recoveries.”
Schnur resigned as interim CEO and CFO on April ten. He will continue to oversee the debtors by means of Ankura Consulting Group, which was retained by Yuma as its fiscal adviser.
Schnur explained Yuma experienced recapitalized its fiscal composition by means of credit rating and restructuring agreements with its lender, YE Investment decision, and with Crimson Mountain Funds Partners, but YE not long ago notified Yuma it was terminating the credit rating arrangement and accelerating all payments because of to Yuma’s failure to make timely interest payments and comply with covenants. Crimson Mountain also terminated its restructuring arrangement.
YE Investment decision, an affiliate of Crimson Mountain, declared it experienced purchased all of Yuma’s senior secured lender debt in September 2019.