Lilis Energy’s employee incentive, retention programs draw objection

By Sarah Lizee

Olympia, Wash., Sept. 23 – Lilis Energy, Inc.’s motion to implement a key employee incentive plan and an employee retention program for non-insider employees drew an objection from the official committee of unsecured creditors, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The committee said that, as proposed, the KEIP “is a disguised retention agreement for insiders and should be disallowed.”

The committee added that the KEIP should be denied because it is not calculated to maximize value to the estate and the debtors’ have not carried their burden of proof in showing that the KEIP is an exercise of the debtors’ sound business judgment.

“Similarly, the debtors have not shown that the KERP is an exercise of the debtors’ sound business judgment,” the committee said.

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 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 20-33274.

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