Yuma Energy Files for Bankruptcy, Plans to Liquidate
Yuma Electricity has submitted for Chapter eleven personal bankruptcy defense in the U.S. Bankruptcy Court for the Northern District of Texas. The organization mentioned its cash position deteriorated in the 1st quarter of 2020 and its cash flow from functions was no extended sufficient to go over its functioning fees.
It was trying to get courtroom acceptance to hold an auction “for significantly all” of its assets, it mentioned. The auction is anticipated to arise in the 1st 90 days of the personal bankruptcy. The assets are mainly properties in Louisiana, Texas, Wyoming, and Oklahoma.
Yuma mentioned it may well negotiate for new debtor-in-possession funding but was not particular those people negotiations would be profitable. The organization strategies to proceed to operate its small business in the normal course in the course of the personal bankruptcy process.
“Our revenues and cash position have eroded to the point of unsustainability mainly pushed by the extreme downturn in oil price ranges,” the company’s former CEO and CFO, Anthony Schnur, mentioned in a statement. “After significantly thought, the company’s Board of Directors came to the decision that the use of the Chapter eleven liquidation process was the ideal path ahead to improve 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 financial adviser.
Schnur mentioned Yuma experienced recapitalized its financial framework by means of credit rating and restructuring agreements with its loan provider, YE Financial investment, and with Red Mountain Capital Associates, but YE a short while ago notified Yuma it was terminating the credit rating settlement and accelerating all payments because of to Yuma’s failure to make well timed curiosity payments and comply with covenants. Red Mountain also terminated its restructuring settlement.
YE Financial investment, an affiliate of Red Mountain, introduced it experienced bought all of Yuma’s senior secured lender credit card debt in September 2019.
