Yuma Energy, Inc.

Yuma's Chapter 11 case converted to Chapter 7 liquidation after its planned asset auction drew only minimal bids amid the 2020 oil-price collapse and unresolved well problems, and secured creditor YE Investment (Red Mountain) could not agree on a plan with the Unsecured Creditors Committee.

bankruptcy or receivership

Yuma Energy, Inc.'s exchange filed to remove a class of its securities from listing.

listing compliance notice

Yuma Energy and three subsidiaries filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the Northern District of Texas, intending an orderly 90-day auction of its Louisiana, Texas, Wyoming and Oklahoma properties. CRO Anthony Schnur briefly stepped down from his interim executive titles to join restructuring firm Ankura Consulting, then was immediately reappointed Chief Restructuring Officer through Ankura.

bankruptcy or receivership

The Restructuring Agreement's required stockholder approval was never obtained by its December 31, 2019 deadline, so YE Investment/Red Mountain terminated the agreement and declared all amounts under the credit facility immediately due - reversing the lifeline extended just months earlier.

material agreement termination

Yuma and Red Mountain's YE Investment amended and restated the credit agreement, adding a new $2.0M delayed-draw term loan (10% interest, maturing September 2022, 10% prepayment penalty) on top of the $1.7M already purchased and reduced from the original bank debt.

debt financing

Red Mountain Capital Partners' affiliate YE Investment had purchased Yuma's entire ~$32.8M senior secured bank debt and, under a Restructuring and Exchange Agreement, cut it down to a $1.4M note convertible into common stock at about $0.129/share (5% interest, maturing 2022) - a drastic debt writedown that handed Red Mountain effective control, conditioned on stockholder approval by December 31, 2019.

debt financing

Yuma entered a forbearance agreement with YE Investment LLC - an affiliate of Red Mountain Capital Partners, already a Yuma shareholder since the 2016 Davis Petroleum merger - under which YE agreed not to enforce its rights over Yuma's existing loan defaults until October 26, 2019. The 8-K was signed by Anthony C. Schnur in the new role of Chief Restructuring Officer, confirming a formal restructuring was underway.

material agreement

NYSE American accepted Yuma's compliance plan and granted it a plan period through December 2020 to fix its equity deficiencies - a reprieve from immediate delisting, not a resolution of the underlying financial distress.

listing compliance notice

NYSE American issued a third listing deficiency notice: stockholders' equity had fallen further, to about $2.4M as of June 30, 2019, now also breaching a separate, lower $4.0M equity threshold on top of the still-unresolved June notice.

listing compliance notice

To address the low-share-price delisting notice, Yuma's board approved a 1-for-15 reverse stock split, effective July 3, 2019, cutting shares outstanding from about 23.2M to about 1.5M. It fixed the price-compliance problem but did nothing for the company's underlying equity and liquidity shortfalls.

security holder rights change

NYSE American cited Yuma for a second listing deficiency: stockholders' equity of $5,998,045 as of March 31, 2019, just under the $6.0M minimum required given its history of losses. Yuma had until mid-July to submit a compliance plan, with a cure deadline of December 2020.

listing compliance notice

Moss Adams declined to stand for reappointment as Yuma's auditor shortly after its report on Yuma's 2018 financial statements included an explicit going-concern qualification - substantial doubt about the company's ability to continue as a going concern. Marcum LLP was appointed for fiscal 2019.

auditor change

NYSE American warned Yuma that its stock had traded at a low price for a sustained period and gave it until July 2019 to fix it via a reverse split or sustained price improvement or face delisting.

listing compliance notice

Societe Generale formally declared an Event of Default after Yuma again fell below its $4M minimum-liquidity covenant. The lenders reserved the right to accelerate the $35M outstanding balance and add a 2% default interest rate but had not yet done so.

debt default or forbearance

Yuma needed a third waiver in four months, this time covering three simultaneous covenant breaches (debt-to-EBITDAX, current ratio and interest coverage) for the quarter ended June 30, 2018 - the covenant erosion was accelerating, not stabilizing.

material agreement

Yuma breached its $4M minimum-liquidity covenant and again needed a lender waiver, this time also agreeing to weekly cash-flow forecasts and monthly payables reports to its lenders - a level of creditor oversight typical of a company under close credit-risk monitoring.

material agreement

Yuma breached its debt-to-EBITDAX covenant for the quarter ended March 31, 2018 and needed a lender waiver to avoid default. Societe Generale granted the waiver but cut the borrowing base from $44M to $35M, required more hedging, and added monthly reporting - the first formal covenant breach in the credit facility's history.

material agreement

Yuma Energy reincorporated from California to Delaware and merged with Davis Petroleum Acquisition Corp, issuing about 7.46M shares and 1.75M Series D preferred shares to Davis's holders (bringing in PE investors Red Mountain Capital Partners, Sankaty/Bain, HarbourVest and Dover Street). The combined company took on a new $75M, three-year senior secured revolving credit facility with Societe Generale, initial borrowing base $44M, maturing October 2019, with covenants including a 3.5x debt-to-EBITDAX limit.

business combination

the New York Stock Exchange certified Yuma Energy, Inc.'s securities for listing, clearing them to begin trading.

listing compliance notice