Lilis Energy equity investment pulled; sale process to be launched

By Caroline Salls

Pittsburgh, Aug. 17 – Lilis Energy, Inc.’s debtor-in-possession financing and asset sale procedures hearings have been pushed back three days to Friday, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

Lilis requested the brief postponement on Monday, saying Varde has declined to pursue its equity investment in the company to sponsor Lilis’ Chapter 11 plan.

As a result, the company said its restructuring support agreement and the terms of the DIP financing agreement require it to immediately begin the process for selling substantially all of its assets.

“The debtors currently are engaged in active discussions with their major stakeholders and require additional time to attempt to reach a consensual resolution of open issues,” the motion said.

Lilis said it was withdrawing its motion for approval of replacement DIP financing and of the equity commitment agreement.

Lilis is a Fort Worth-based independent oil and gas exploration and production company that operates in the Permian’s Delaware Basin. The company filed bankruptcy on June 28 under Chapter 11 case number 20-33274.

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