Yuma Power has submitted for Chapter eleven personal bankruptcy protection in the U.S. Individual bankruptcy Court docket for the Northern District of Texas. The corporation reported its cash placement deteriorated in the first quarter of 2020 and its cash movement from functions was no extended sufficient to protect its functioning expenditures.
It was trying to get court docket approval to hold an auction “for significantly all” of its property, it reported. The auction is anticipated to occur in the first 90 times of the personal bankruptcy. The property are principally qualities in Louisiana, Texas, Wyoming, and Oklahoma.
Yuma reported it may perhaps negotiate for new debtor-in-possession funding but was not particular those negotiations would be effective. The corporation designs to keep on to operate its small business in the regular course in the course of the personal bankruptcy system.
“Our revenues and cash placement have eroded to the place of unsustainability principally driven by the severe downturn in oil costs,” the company’s former CEO and CFO, Anthony Schnur, reported in a statement. “After substantially consideration, the company’s Board of Directors came to the choice that the use of the Chapter eleven liquidation system was the very best route ahead to optimize values and recoveries.”
Schnur resigned as interim CEO and CFO on April ten. He will keep on to oversee the debtors through Ankura Consulting Team, which was retained by Yuma as its economical adviser.
Schnur reported Yuma had recapitalized its economical framework through credit score and restructuring agreements with its loan provider, YE Financial investment, and with Pink Mountain Cash Partners, but YE recently notified Yuma it was terminating the credit score settlement and accelerating all payments owing to Yuma’s failure to make well timed interest payments and comply with covenants. Pink Mountain also terminated its restructuring settlement.
YE Financial investment, an affiliate of Pink Mountain, declared it had procured all of Yuma’s senior secured lender financial debt in September 2019.