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Lilis Energy to Pursue Sale Process
August 17, 2020
Therefore, in accordance with the terms of the Restructuring Support Agreement (the “RSA”) entered into among the Company and certain of its subsidiaries, all of the lenders under the Company’s existing RBL credit agreement, and the Värde Funds, as well as the Company’s debtor-in-possession financing facility, the Company will immediately begin pursuing a process to sell substantially all of its assets through the chapter 11 process, which may be pursuant to section 363 of the Bankruptcy Code or a chapter 11 plan. The proposed form of bidding procedures was previously filed with the
“While the Company is disappointed that the Värde Funds declined to pursue the new money investment contemplated by the RSA,” said
More information regarding the formal bidding process will be made publicly available after the
Additional information about the Chapter 11 cases filed by the Company and certain of its subsidiaries can be accessed via PACER at https://www.pacer.gov and at https://cases.stretto.com/LilisEnergy or by calling (855) 364-4639 (Toll-Free) or (949) 266-6357 (Local).
This news release contains “forward-looking statements” within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are not statements of historical facts and often contain words such as “may,” “will,” “expect,” “believe,” “anticipate,” “plan,” “estimate,” “seek,” “could,” “should,” “intend,” “potential” or words of similar meaning. Forward-looking statements are based on management’s expectations, beliefs, assumptions and estimates regarding the Company, industry, economic conditions, government regulations and energy policies and other factors. Forward-looking statements may include, for example, statements regarding the Chapter 11 cases, the Company’s ability to complete the restructuring and sale process, its ability to obtain the Court’s approval of the bidding procedures, the Company’s belief that interested parties will bid on its assets, the Company’s ability to continue operating in the ordinary course while the Chapter 11 cases are pending, and the outcome and timing of the Chapter 11 process and closing of the sale process. These statements are subject to significant risks, uncertainties and assumptions difficult to predict and could cause actual results to differ materially and adversely from those expressed or implied in the forward-looking statements, including risks and uncertainties regarding the Company’s ability to complete a reorganization process under Chapter 11, including consummation of the restructuring in accordance with the terms of any restructuring support agreement; potential adverse effects of the Chapter 11 cases on the Company’s liquidity and results of operations; the Company’s ability to obtain timely approval by the bankruptcy court regarding the motions filed in the Chapter 11 cases; objections to the Company’s restructuring process, the DIP facility, or other pleadings filed that could protract the Chapter 11 cases or the sale process; employee attrition and the Company’s ability to retain senior management and other key personnel due to the distractions and uncertainties, including the Company’s ability to provide adequate compensation and benefits during the Chapter 11 cases; the Company’s ability to comply with the restrictions imposed by the DIP facility and other financing arrangements; the Company’s ability to maintain relationships with suppliers, customers, employees and other third parties and regulatory authorities because of the Chapter 11 filing; the effects of the Chapter 11 cases on the Company and on the interests of various constituents, including holders of the Company’s common stock; the effects of the Chapter 11 cases on the market price of the Company’s common stock and on the Company’s ability to access the capital markets; the bankruptcy court’s rulings in the Chapter 11 cases, including the approvals of the terms of the restructuring, the DIP facility and the bidding procedures, and the outcome of the Chapter 11 cases generally; the time that the Company will operate under Chapter 11 protection and the continued availability of operating capital during the pendency of the Chapter 11 cases; risks associated with third party motions in the Chapter 11 cases, which may interfere with the Company’s ability to consummate the sale process; increased administrative and legal costs related to the Chapter 11 process; unforeseen circumstances or other disruptions to normal business operations or the sale process due to the effects of the COVID-19 coronavirus; and other litigation and inherent risks involved in a bankruptcy process. Forward-looking statements are also subject to the risk factors and cautionary language described occasionally in the reports and registration statements the Company files with the
Source: Lilis Energy, Inc.