Lilis Energy mineral lienholders object to disclosure statement

By Sarah Lizee

Olympia, Wash., Oct. 2 – Lilis Energy, Inc.’s disclosure statement for its proposed joint Chapter 11 plan of liquidation drew an objection from mineral lienholders, according to a Thursday filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The group said the disclosure statement lacks adequate information to allow creditors to make an informed choice regarding the plan.

“The disclosure statement makes sweeping statements that creditors would receive less in a Chapter 7 liquidation; however, the referenced liquidation analysis at exhibit D is blank,” the group said in the objection.

“The disclosure statement fails to address the need for a determination of mineral lien validity and priority and fails to provide different treatment for the mineral lienholders separate from the general unsecured creditors.”

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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