Lilis Energy gets approval of employee incentive, retention programs

By Sarah Lizee

Olympia, Wash., Oct. 2 – Lilis Energy, Inc. received court approval to implement a key employee retention program for certain employees that are not insiders and a key employee incentive plan for the debtors’ two remaining senior level employees, according to an order filed Thursday with the U.S. Bankruptcy Court for the Southern District of Texas.

Any awards earned under the KEIP will be paid as closing costs out of the proceeds from the sale of the debtors’ assets, and those awards will be segregated into a designated account held by the debtors and only paid to the KEIP participants pending satisfaction of the conditions of the program.

The senior management employees have waived any rights to payment they may have had under the prepetition ERP in exchange for the right to participate in the KEIP and in the event any awards are earned and actually paid under the KEIP, they will not seek the allowance of an administrative priority claim against the debtors’ estates for any change of control or severance under the terms of their existing employment contracts.

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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