Lilis Energy debenture holders waive default under 8% convertibles

Holders agree to forgive default arising from term loans with Hexagon

By Devika Patel

Knoxville, Tenn., Oct. 7 – Lilis Energy Inc. has negotiated a default waiver for its 8% senior secured convertible debentures on Oct. 6, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

A default arose on Aug. 15 in connection with the company’s term loans with Hexagon, LLC, which constituted a default under the convertible debentures.

As a result of the default, the investors had the right to accelerate debt collection and take legal or other actions to collect the debt, foreclose on the collateral securing the debentures and to increase the debentures’ interest rate to 18%.

The debenture holders agreed to waive the default, and the company agreed to let T.R. Winston & Co., the representative for the investors, nominate two individuals to the company’s board of directors.

The oil and gas company is based in Denver.

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