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Lilis Energy Voluntarily Files for Chapter 11 Bankruptcy

Vinson & Elkins is advising Lilis Energy (“the Company”) in connection with its chapter 11 bankruptcy filing in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. Lilis Energy is an exploration and production company operating in the Permian Basin of West Texas and Southeastern New Mexico.

The Chapter 11 petitions were filed in accordance with a Restructuring Support Agreement (“RSA”) entered into between the Company and certain of its subsidiaries, certain investment funds and entities affiliated with Värde Partners, Inc. Under the RSA, the Company and its subsidiaries, the RBL Lenders and the Värde Funds have agreed to support a restructuring of the company and its subsidiaries under a Chapter 11 plan of reorganization. The plan 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. The Plan is contingent upon the Värde Funds’ election to provide, on or before August 17, 2020, an agreed equity commitment and provision of additional debtor-in-possession financing. In the event the Värde Funds elect not to provide DIP financing and to make the equity investment in the Company or the Plan contemplated in the RSA is not otherwise pursued, the RSA provides that the Company will pursue an agreed sales process with respect to its assets. The company expects to continue to operate in the ordinary course throughout the restructuring process without material disruption to vendors, suppliers and partners.

The V&E team is led by partners David Meyer, Harry Perrin and George Howard with assistance from senior associate Steven Zundell and associates Michael Garza, Kiran Vakamudi, Trevor Spears and Lauren Lundy. Also advising are partners Jeff Floyd, James Longhofer, Guy Gribov, John Lynch, Shamus Crosby, David Peck, Rebecca Petereit, Ferguson McNiel and Wendy Salinas; of counsel Jim Prince, counsel Sarah Mitchell; senior associates Zach Rider, Allison Fuller, Jing Tong, Matthew Hoffman and Anne Peetz; and associates Neil Clausen, Jeremy Gonzalez, David Lassetter, Marcus Martinez and Erin Webb.

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