Yuma Power has filed for Chapter 11 bankruptcy protection in the U.S. Individual bankruptcy Court for the Northern District of Texas. The company stated its funds situation deteriorated in the initial quarter of 2020 and its funds movement from functions was no more time adequate to address its functioning fees.
It was in search of court acceptance to keep an auction “for considerably all” of its belongings, it stated. The auction is anticipated to come about in the initial 90 times of the bankruptcy. The belongings are mainly attributes in Louisiana, Texas, Wyoming, and Oklahoma.
Yuma stated it may perhaps negotiate for new debtor-in-possession funding but was not particular those people negotiations would be profitable. The company ideas to continue to run its business in the normal program all through the bankruptcy system.
“Our revenues and funds situation have eroded to the stage of unsustainability mainly pushed by the critical downturn in oil selling prices,” the company’s previous CEO and CFO, Anthony Schnur, stated in a assertion. “After a great deal consideration, the company’s Board of Administrators arrived to the conclusion that the use of the Chapter 11 liquidation system was the most effective route ahead to improve values and recoveries.”
Schnur resigned as interim CEO and CFO on April ten. He will continue to oversee the debtors as a result of Ankura Consulting Group, which was retained by Yuma as its money adviser.
Schnur stated Yuma experienced recapitalized its money framework as a result of credit rating and restructuring agreements with its financial institution, YE Financial commitment, and with Red Mountain Capital Companions, but YE not too long ago notified Yuma it was terminating the credit rating agreement and accelerating all payments thanks to Yuma’s failure to make well timed fascination payments and comply with covenants. Red Mountain also terminated its restructuring agreement.
YE Financial commitment, an affiliate of Red Mountain, declared it experienced acquired all of Yuma’s senior secured lender debt in September 2019.