May 27, 2024

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Yuma Energy Files for Bankruptcy, Plans to Liquidate

Yuma Vitality has submitted for Chapter 11 bankruptcy safety in the U.S. Personal bankruptcy Courtroom for the Northern District of Texas. The business said its income situation deteriorated in the very first quarter of 2020 and its income circulation from operations was no extended sufficient to cover its operating expenses.

It was searching for courtroom acceptance to keep an auction “for substantially all” of its belongings, it said. The auction is anticipated to come about in the very first 90 days of the bankruptcy. The belongings are primarily qualities in Louisiana, Texas, Wyoming, and Oklahoma.

Yuma said it could negotiate for new debtor-in-possession financing but was not specified people negotiations would be successful. The business options to proceed to operate its company in the normal class in the course of the bankruptcy procedure.

“Our revenues and income situation have eroded to the issue of unsustainability primarily pushed by the significant downturn in oil charges,” the company’s previous CEO and CFO, Anthony Schnur, said in a assertion. “After much thought, the company’s Board of Directors arrived to the conclusion that the use of the Chapter 11 liquidation procedure was the finest path ahead to optimize values and recoveries.”

Schnur resigned as interim CEO and CFO on April 10. He will proceed to oversee the debtors as a result of Ankura Consulting Team, which was retained by Yuma as its money adviser.

Schnur said Yuma experienced recapitalized its money structure as a result of credit score and restructuring agreements with its loan company, YE Investment, and with Red Mountain Capital Associates, but YE not too long ago notified Yuma it was terminating the credit score settlement and accelerating all payments due to Yuma’s failure to make timely fascination payments and comply with covenants. Red Mountain also terminated its restructuring settlement.

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

chapter 11, Liquidation, Yuma Vitality