Yuma Energy has filed for Chapter eleven personal bankruptcy safety in the U.S. Personal bankruptcy Court for the Northern District of Texas. The company claimed its money situation deteriorated in the initially quarter of 2020 and its money circulation from functions was no longer adequate to cover its operating charges.
It was trying to find courtroom approval to hold an auction “for considerably all” of its assets, it claimed. The auction is envisioned to manifest in the initially ninety days of the personal bankruptcy. The assets are generally qualities in Louisiana, Texas, Wyoming, and Oklahoma.
Yuma claimed it may negotiate for new debtor-in-possession financing but was not specific these negotiations would be productive. The company designs to keep on to run its company in the ordinary system all through the personal bankruptcy process.
“Our revenues and money situation have eroded to the place of unsustainability generally pushed by the significant downturn in oil costs,” the company’s former CEO and CFO, Anthony Schnur, claimed in a statement. “After significantly thing to consider, the company’s Board of Directors came to the selection that the use of the Chapter eleven liquidation process was the finest route forward to optimize values and recoveries.”
Schnur resigned as interim CEO and CFO on April ten. He will keep on to oversee the debtors by way of Ankura Consulting Group, which was retained by Yuma as its economical adviser.
Schnur claimed Yuma had recapitalized its economical composition by way of credit and restructuring agreements with its financial institution, YE Financial investment, and with Crimson Mountain Cash Partners, but YE not long ago notified Yuma it was terminating the credit settlement and accelerating all payments because of to Yuma’s failure to make timely desire payments and comply with covenants. Crimson Mountain also terminated its restructuring settlement.
YE Financial investment, an affiliate of Crimson Mountain, introduced it had acquired all of Yuma’s senior secured lender credit card debt in September 2019.