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Yuma Energy Files for Bankruptcy, Plans to Liquidate

Yuma Energy has filed for Chapter 11 personal bankruptcy security in the U.S. Individual bankruptcy Court docket for the Northern District of Texas. The enterprise stated its dollars situation deteriorated in the first quarter of 2020 and its dollars flow from operations was no longer sufficient to address its running fees. It was in search […]

Yuma Energy has filed for Chapter 11 personal bankruptcy security in the U.S. Individual bankruptcy Court docket for the Northern District of Texas. The enterprise stated its dollars situation deteriorated in the first quarter of 2020 and its dollars flow from operations was no longer sufficient to address its running fees.

It was in search of courtroom acceptance to maintain an auction “for significantly all” of its property, it stated. The auction is predicted to arise in the first 90 days of the personal bankruptcy. The property are largely qualities in Louisiana, Texas, Wyoming, and Oklahoma.

Yuma stated it may negotiate for new debtor-in-possession funding but was not selected individuals negotiations would be profitable. The enterprise plans to continue to operate its company in the normal training course all through the personal bankruptcy procedure.

“Our revenues and dollars situation have eroded to the point of unsustainability largely driven by the severe downturn in oil charges,” the company’s former CEO and CFO, Anthony Schnur, stated in a assertion. “After a lot thing to consider, the company’s Board of Directors came to the selection that the use of the Chapter 11 liquidation procedure was the best path forward to improve values and recoveries.”

Schnur resigned as interim CEO and CFO on April 10. He will continue to oversee the debtors by way of Ankura Consulting Group, which was retained by Yuma as its monetary adviser.

Schnur stated Yuma experienced recapitalized its monetary structure by way of credit score and restructuring agreements with its loan provider, YE Investment, and with Red Mountain Funds Associates, but YE just lately notified Yuma it was terminating the credit score arrangement and accelerating all payments thanks to Yuma’s failure to make timely desire payments and comply with covenants. Red Mountain also terminated its restructuring arrangement.

YE Investment, an affiliate of Red Mountain, introduced it experienced ordered all of Yuma’s senior secured financial institution personal debt in September 2019.

chapter 11, Liquidation, Yuma Energy