Each one in plain English, with the numbers worked through for a shareholder.
7 Dec 2020bankruptcy or receivership▼ BadMajor
Lilis Energy ceased to exist: the Bankruptcy Court confirmed a liquidating Chapter 11 plan on November 17, 2020, the $46.6 million Ameredev asset sale closed December 1, and by the plan's effective date of December 4, 2020 Lilis and all its subsidiaries were dissolved, all of the company's notes, credit agreements and equity - common and preferred stock alike - were cancelled, and remaining proceeds passed to a liquidation trust for creditors. Auditor BDO confirmed its relationship with the company had simply ceased to exist, closing out the twelve-year run that began as a 2009 Nevada shell reverse merger.
16 Nov 2020asset acquisition disposition▼ BadMajor
Lilis Energy's bankruptcy ended in liquidation, not reorganization: a Section 363 auction of substantially all its assets was won by Ameredev Texas for $46.6 million, and the Bankruptcy Court approved the sale on November 13, 2020.
Lilis's DIP lenders granted a sixth extension of bankruptcy-case milestones and agreed future deadline extensions could be handled by simple email agreement - a sign the process of winding down the case, rather than any real recovery, was now the routine.
Lilis's DIP lenders extended the deadlines for court approval of the bankruptcy disclosure statement and for holding the asset auction, the fifth such extension.
Lilis's bankruptcy lenders again pushed back the deadlines for confirming and implementing a Chapter 11 reorganization plan, the fourth such DIP credit agreement extension since the June 2020 filing.
Lilis's bankruptcy lenders extended the deadline for filing an approved Chapter 11 plan of reorganization and disclosure statement, a procedural amendment to the DIP credit agreement as the asset-sale process continued.
Varde Partners - the lender and preferred-equity backer that had fueled Lilis's Permian turnaround since 2017 - declined to sponsor a new-money Chapter 11 reorganization plan, collapsing the case's dual-track strategy down to a straight sale of substantially all the company's assets under Section 363. The restructuring support agreement among the debtors, RBL lenders and Varde was mutually terminated as bidding procedures for an asset auction moved forward.
Lilis Energy and its subsidiaries (Brushy Resources, ImPetro Operating, ImPetro Resources, Lilis Operating Company and Hurricane Resources) had filed for Chapter 11 bankruptcy protection on June 28, 2020, entering a debtor-in-possession credit agreement with BMO two days later. This filing extends deadlines under that DIP facility for certain bankruptcy-court milestones - the borrowing-base death spiral that ran through 2019 and early 2020 had ended in the company's collapse into Chapter 11.
Lilis missed the final $7.75 million borrowing-base-deficiency payment due 5 June 2020, adding a payment default to breaches of its leverage and asset-coverage covenants at 31 March, unfiled financial statements and unpaid trade payables. BMO and the majority lenders granted a forbearance of just three weeks, to 26 June, and used it to liquidate the company's commodity hedges - an expected $10 million or more - against the debt, which reduces the balance but cures none of the defaults.
8 May 2020material agreement termination▼ BadMajor
Lilis walked away from its 2018 Salt Creek Midstream crude gathering agreement entirely, terminating it with no penalty - unwinding one of the infrastructure wins it had touted during its Permian buildout as the liquidity crisis deepened.
Lilis's lenders granted a much longer reprieve this time - pushing the final $7.75 million payment to June 5, 2020, waiving Q1 2020 leverage and current-ratio covenants, and delaying the spring borrowing-base redetermination itself to June 5 - buying time through the worst of the 2020 oil price collapse rather than resolving the underlying deficiency.
Lilis pushed its final $7.75 million borrowing-base-deficiency payment back another week, to April 21, as the COVID-era oil price crash deepened the company's liquidity strain.
As oil prices collapsed with the onset of COVID-19, BMO's lenders waived Lilis's year-end 2019 leverage and current-ratio covenants and its hedging requirements through mid-2020 - and pointedly waived the requirement that the company's audited financial statements arrive without a going-concern qualification, telegraphing that auditors were expected to raise going-concern doubt.
The Marlin acreage sale closed and its $17.25 million proceeds cut Lilis's borrowing-base deficiency from $25 million to $7.75 million - real progress, though the remaining balance and its tight repayment deadlines still carried default risk.
The Värde Fund XI G.P., LLC, The Värde Fund XII G.P., L.P, The Värde Fund XII UGP, LLC, The Värde Skyway Mini-Master Fund, L.P, The Värde Skyway Fund, L.P, The Värde Skyway Fund G.P., L.P, The Värde Skyway Fund UGP, LLC, The Värde Fund VI-A, L.P, Värde Investment Partners, L.P, Värde Investment Partners G.P., L.P, Värde Investment Partners UGP, LLC, Värde Partners, L.P, Värde Partners, Inc, George G. Hicks, Ilfryn Carstairs reported a LILIS ENERGY, INC. shareholding of 49,291,099 shares (40.40% of votes) in a periodic institutional filing.
The Värde Fund XI G.P., LLC, The Värde Fund XII G.P., L.P, The Värde Fund XII UGP, LLC, The Värde Skyway Mini-Master Fund, L.P, The Värde Skyway Fund, L.P, The Värde Skyway Fund G.P., L.P, The Värde Skyway Fund UGP, LLC, The Värde Fund VI-A, L.P, Värde Investment Partners, L.P, Värde Investment Partners G.P., L.P, Värde Investment Partners UGP, LLC, Värde Partners, L.P, Värde Partners, Inc, George G. Hicks, Ilfryn Carstairs reported a LILIS ENERGY, INC. shareholding of 49,291,099 shares (42.00% of votes) in a periodic institutional filing.
The Värde Fund XI G.P., LLC, The Värde Fund XII G.P., L.P, The Värde Fund XII UGP, LLC, The Värde Skyway Mini-Master Fund, L.P, The Värde Skyway Fund, L.P, The Värde Skyway Fund G.P., L.P, The Värde Fund VI-A, L.P, Värde Investment Partners, L.P, Värde Investment Partners G.P., L.P, Värde Partners, L.P, Värde Partners, Inc, George G. Hicks reported a LILIS ENERGY, INC. shareholding of 20,505,097 shares (20.00% of votes) in a periodic institutional filing.
Lilis bought two more weeks on its first borrowing-base installments and lined up its funding fix: selling its northernmost Lea County, New Mexico acreage (about 1,185 undeveloped net acres) for roughly $24.9 million, with $17.25 million of that earmarked straight toward the deficiency - the company was now selling core Permian leasehold specifically to service bank debt.
Encompass Capital Advisors LLC, Encompass Capital Partners LLC, Todd J. Kantor reported no remaining LILIS ENERGY, INC. shareholding in its periodic institutional filing.
13 Feb 2020listing compliance notice● NeutralMajor
NYSE American accepted Lilis's compliance plan for its stockholders'-equity and recurring-losses deficiency, giving it until May 2021 to show progress with quarterly updates - a temporary reprieve rather than a fix.
Southpaw Asset Management LP, Southpaw Holdings LLC, Kevin Wyman, Howard Golden reported a LILIS ENERGY, INC. shareholding of 2,556,735 shares (2.80% of votes) in a periodic institutional filing.
Lilis pushed its first two borrowing-base-deficiency installments back again, consolidating both onto February 18, 2020 - the same default risk still hanging over the company with no funding solution yet in place.
