July 24, 2024


Imagination at work

Yuma Energy Files for Bankruptcy, Plans to Liquidate

Yuma Vitality has submitted for Chapter 11 bankruptcy defense in the U.S. Personal bankruptcy Courtroom for the Northern District of Texas. The corporation explained its hard cash posture deteriorated in the first quarter of 2020 and its hard cash flow from operations was no longer adequate to include its functioning charges.

It was searching for court docket acceptance to maintain an auction “for substantially all” of its assets, it explained. The auction is envisioned to manifest in the first 90 days of the bankruptcy. The assets are principally qualities in Louisiana, Texas, Wyoming, and Oklahoma.

Yuma explained it may perhaps negotiate for new debtor-in-possession financing but was not particular individuals negotiations would be productive. The corporation ideas to continue to operate its enterprise in the normal program through the bankruptcy method.

“Our revenues and hard cash posture have eroded to the level of unsustainability principally pushed by the significant downturn in oil prices,” the company’s former CEO and CFO, Anthony Schnur, explained in a statement. “After substantially thing to consider, the company’s Board of Administrators arrived to the choice that the use of the Chapter 11 liquidation method was the greatest route forward to maximize 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 economical adviser.

Schnur explained Yuma experienced recapitalized its economical composition by means of credit score and restructuring agreements with its loan provider, YE Financial commitment, and with Pink Mountain Money Partners, but YE not long ago notified Yuma it was terminating the credit score agreement and accelerating all payments due to Yuma’s failure to make timely curiosity payments and comply with covenants. Pink Mountain also terminated its restructuring agreement.

YE Financial commitment, an affiliate of Pink Mountain, announced it experienced procured all of Yuma’s senior secured lender personal debt in September 2019.

chapter 11, Liquidation, Yuma Vitality