Yuma Energy Files for Bankruptcy, Plans to Liquidate

Yuma Strength has submitted for Chapter 11 individual bankruptcy protection in the U.S. Personal bankruptcy…

Yuma Strength has submitted for Chapter 11 individual bankruptcy protection in the U.S. Personal bankruptcy Court docket for the Northern District of Texas. The corporation claimed its cash placement deteriorated in the initially quarter of 2020 and its cash circulation from operations was no extended sufficient to protect its functioning expenditures.

It was searching for court approval to keep an auction “for substantially all” of its belongings, it claimed. The auction is expected to take place in the initially 90 times of the individual bankruptcy. The belongings are largely qualities in Louisiana, Texas, Wyoming, and Oklahoma.

Yuma claimed it may possibly negotiate for new debtor-in-possession funding but was not particular individuals negotiations would be productive. The corporation plans to proceed to operate its business in the regular study course through the individual bankruptcy method.

“Our revenues and cash placement have eroded to the issue of unsustainability largely driven by the intense downturn in oil costs,” the company’s former CEO and CFO, Anthony Schnur, claimed in a assertion. “After significantly thing to consider, the company’s Board of Administrators came to the conclusion that the use of the Chapter 11 liquidation method was the most effective path ahead to optimize values and recoveries.”

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

Schnur claimed Yuma experienced recapitalized its monetary structure as a result of credit history and restructuring agreements with its loan company, YE Financial investment, and with Purple Mountain Capital Associates, but YE lately notified Yuma it was terminating the credit history settlement and accelerating all payments thanks to Yuma’s failure to make timely curiosity payments and comply with covenants. Purple Mountain also terminated its restructuring settlement.

YE Financial investment, an affiliate of Purple Mountain, introduced it experienced obtained all of Yuma’s senior secured lender credit card debt in September 2019.

chapter 11, Liquidation, Yuma Strength