Lilis Energy Inc., Fort Worth, will pursue a process to sell substantially all of its assets in accordance with terms a restructuring support agreement after certain investment funds and entities affiliated with Värde Partners Inc. declined to pursue a new money investment in the company to sponsor a chapter 11 plan of reorganization.
The proposed form of bidding procedures was previously filed with the United States Bankruptcy Court for the Southern District of Texas, Houston Division, and will be scheduled for hearing and approval by the court on Aug. 21.
The Lilis Energy Inc. has voluntarily filed under Chapter 11 of the US Bankruptcy Code in the US bankruptcy court for the Southern District of Texas, Houston Division.
The company, which filed Chapter 11 petitions in late June in hopes of reducing funded debt obligations of more than $34.9 million, holds a contiguous block of 16,000 net acres in the deep and over-pressured portion of the Delaware basin, including Winkler and Loving Counties in Texas and Lea County in New Mexico (OGJ Online, June 29, 2020).