Yuma Power has filed for Chapter 11 personal bankruptcy defense in the U.S. Individual bankruptcy Courtroom for the Northern District of Texas. The organization mentioned its cash posture deteriorated in the 1st quarter of 2020 and its cash move from operations was no for a longer period adequate to go over its operating prices.
It was looking for court docket approval to maintain an auction “for considerably all” of its belongings, it mentioned. The auction is expected to occur in the 1st ninety days of the personal bankruptcy. The belongings are principally attributes in Louisiana, Texas, Wyoming, and Oklahoma.
Yuma mentioned it may well negotiate for new debtor-in-possession financing but was not certain all those negotiations would be prosperous. The organization designs to keep on to run its company in the ordinary program during the personal bankruptcy course of action.
“Our revenues and cash posture have eroded to the stage of unsustainability principally pushed by the severe downturn in oil selling prices,” the company’s previous CEO and CFO, Anthony Schnur, mentioned in a statement. “After substantially consideration, the company’s Board of Administrators came to the decision that the use of the Chapter 11 liquidation course of action was the greatest route ahead to optimize values and recoveries.”
Schnur resigned as interim CEO and CFO on April 10. He will keep on to oversee the debtors through Ankura Consulting Group, which was retained by Yuma as its fiscal adviser.
Schnur mentioned Yuma experienced recapitalized its fiscal structure through credit rating and restructuring agreements with its lender, YE Expense, and with Purple Mountain Capital Companions, but YE not long ago notified Yuma it was terminating the credit rating agreement and accelerating all payments because of to Yuma’s failure to make timely interest payments and comply with covenants. Purple Mountain also terminated its restructuring agreement.
YE Expense, an affiliate of Purple Mountain, declared it experienced obtained all of Yuma’s senior secured lender debt in September 2019.
More Stories
How The Legal Environment Can Affect Your Home Business
Great Plains ERP In eCommerce Environment – Combining Hosted Website With Business Portal
Simple Tips To Take Care Of Your Branding Iron