Lilis Energy will sell substantially all of its assets through the Chapter 11 process after Värde Partners declined to pursue a new money investment in the exploration and production company to sponsor a plan of reorganization.
Opportune is serving as restructuring advisor to Lilis Energy, which filed petitions under Chapter 11 of the United States Bankruptcy Code to initiate voluntary cases in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.
Lilis Energy entered into a five-year, $500 million credit agreement. The credit agreement provides for a senior secured reserve based revolving credit facility with an initial borrowing base of $95 million.
Lilis Energy closed $140 million in new financings, consisting of a $125 million convertible second lien term loan facility funded by Värde Partners and $15 million in incremental term loans.
Lilis Energy announced that it has secured a credit facility with Heartland Bank as administrative agent for up to $50 million. The facility matures in January 2016.