Yuma Vitality has filed for Chapter eleven personal bankruptcy defense in the U.S. Individual bankruptcy Court docket for the Northern District of Texas. The corporation reported its funds place deteriorated in the initially quarter of 2020 and its funds movement from operations was no for a longer time adequate to deal with its functioning prices.
It was looking for court docket acceptance to hold an auction “for substantially all” of its belongings, it reported. The auction is envisioned to come about in the initially ninety days of the personal bankruptcy. The belongings are generally houses in Louisiana, Texas, Wyoming, and Oklahoma.
Yuma reported it may negotiate for new debtor-in-possession funding but was not specified individuals negotiations would be profitable. The corporation designs to proceed to function its enterprise in the usual course in the course of the personal bankruptcy procedure.
“Our revenues and funds place have eroded to the stage of unsustainability generally pushed by the severe downturn in oil rates,” the company’s previous CEO and CFO, Anthony Schnur, reported in a statement. “After considerably thing to consider, the company’s Board of Administrators came to the choice that the use of the Chapter eleven liquidation procedure was the ideal route ahead to optimize values and recoveries.”
Schnur resigned as interim CEO and CFO on April 10. He will proceed to oversee the debtors by way of Ankura Consulting Team, which was retained by Yuma as its economic adviser.
Schnur reported Yuma experienced recapitalized its economic construction by way of credit rating and restructuring agreements with its loan company, YE Financial investment, and with Crimson Mountain Funds Partners, but YE not too long ago notified Yuma it was terminating the credit rating arrangement and accelerating all payments due to Yuma’s failure to make timely desire payments and comply with covenants. Crimson Mountain also terminated its restructuring arrangement.
YE Financial investment, an affiliate of Crimson Mountain, announced it experienced purchased all of Yuma’s senior secured bank debt in September 2019.