Another Texas exploration and production company has sought protection under Chapter 11 of the U.S. Bankruptcy Code.
Fort Worth-based Lilis Energy filed Tuesday in the U.S. District Court in the Southern District of Texas, citing $251 million of debt.
Lilis General Counsel Christa Garrett, a 2010 graduate of Texas Wesleyan University School of Law and lawyer at Fort Worth litigation boutique Harris, Finley & Bogle, hired Vinson & Elkins as its lead debtor’s counsel. V&E associate Trevor Spears in Dallas and New York partners David Meyer, George Howard, Steven Zundell and Michael Garza are listed as the lawyers on the matter.
Barclays Capital is the investment banker for the restructuring and Opportune is the restructuring advisor to Lilis.
Lilis, which operates in the Permian Basin, has a pre-planned restructuring agreement with its creditors and equity holders.
“Such Plan, if consummated, is expected to reduce the company’s funded debt obligations by more than $34.9 million, and right-size the company’s bank indebtedness for future operations,” Lilis officials stated in a press announcement.
“The plan contemplated by the RSA further provides that shares of the company’s common stock will be canceled for no consideration,” according to the statement. “The company believes it is unlikely that the holders of shares of its common stock will receive any consideration for their shares under any plan approved by the court, irrespective of whether such plan contemplates terms consistent with or similar to those agreed upon in the RSA.”