Lilis has suffered big time from the decline of oil and gas prices during the coronavirus pandemic.
It has received a commitment from its bank lenders to provide up to $15.0 million in debtor-in-possession financing. The company anticipates up to $5.0 million will be available on an interim basis.
“With the company’s usual operating cash flows, these financings are expected to provide sufficient liquidity for it to continue to operate in the ordinary course through the restructuring process,” Lilis said.
The company’s shares stood at 22.43 cents, down 13.4% in premarket trading, and have plunged 57% over the last year through Friday.
Rosehill enters RSA with creditors, will file voluntary cases for bankruptcy Rosehill Resources and Rosehill Operating Company announced that Rosehill has entered into a Restructuring Support Agreement with the lenders under Rosehill’s revolving first lien credit facility, holders of Rosehill’s second lien notes and the Company’s Series B Preferred Stock, and Tema Oil and Gas Company, as the holder of approximately 66.8% and 35.2% of the equity interests in Rosehill Operating and party to the Company’s Tax Receivable Agreement.
The RSA contemplates that Rosehill will file voluntary cases under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas in order to effect a restructuring through a prepackaged chapter 11 plan of reorganization to be filed with the Bankruptcy Court. The filing of the Chapter 11 Cases is expected to be made on or before July 15, 2020 solely for purposes of implementing the Plan.
The RSA also contemplates that Rosehill will enter into a proposed $17.5 million junior convertible debtor in possession delayed draw term loan facility. Pursuant to the RSA, the Company expects to emerge from bankruptcy within 75 days of filing, in order to implement the balance sheet restructuring outlined by the RSA and the Plan.
The RSA provides that, following consummation of the Plan, the Company’s equity will be owned solely by the Consenting Creditors and holders of the Company’s preferred stock, and that holders of general unsecured claims, including the Company’s trade creditors and vendors, will pass through the Chapter 11 Cases with their claims unimpaired by the bankruptcy and being satisfied in full.