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Yuma Energy Files for Bankruptcy, Plans to Liquidate

Yuma Strength has filed for Chapter 11 individual bankruptcy safety in the U.S. Personal bankruptcy Court docket for the Northern District of Texas. The business said its income posture deteriorated in the first quarter of 2020 and its income movement from functions was no for a longer period enough to include its running expenses.

It was trying to find court approval to maintain an auction “for substantially all” of its belongings, it said. The auction is expected to happen in the first 90 days of the individual bankruptcy. The belongings are generally properties in Louisiana, Texas, Wyoming, and Oklahoma.

Yuma said it may negotiate for new debtor-in-possession financing but was not selected all those negotiations would be successful. The business ideas to proceed to run its business in the ordinary class throughout the individual bankruptcy process.

“Our revenues and income posture have eroded to the issue of unsustainability generally pushed by the intense downturn in oil rates,” the company’s previous CEO and CFO, Anthony Schnur, said in a statement. “After substantially thought, the company’s Board of Directors came to the selection that the use of the Chapter 11 liquidation process was the most effective route ahead to maximize values and recoveries.”

Schnur resigned as interim CEO and CFO on April ten. He will proceed to oversee the debtors by means of Ankura Consulting Team, which was retained by Yuma as its monetary adviser.

Schnur said Yuma experienced recapitalized its monetary structure by means of credit score and restructuring agreements with its lender, YE Expense, and with Purple Mountain Cash Partners, but YE recently notified Yuma it was terminating the credit score settlement and accelerating all payments because of to Yuma’s failure to make timely curiosity payments and comply with covenants. Purple Mountain also terminated its restructuring settlement.

YE Expense, an affiliate of Purple Mountain, declared it experienced ordered all of Yuma’s senior secured lender financial debt in September 2019.

chapter 11, Liquidation, Yuma Strength