|Over a month ago|
Yuma Energy announces delisting of trading on NYSE after Chapter 11 process » 17:0504/2304/23/20
Yuma Energy has been…
Yuma Energy has been notified by the NYSE that its common stock has been suspended from trading on the NYSE as it is "no longer suitable for listing" pursuant to Section 100 of the NYSE American Company Guide. In reaching its delisting determination, the NYSE noted the uncertainty as to the timing and outcome of the company's bankruptcy process in addition to the ultimate effect of this process on the value of the company's common stock. As previously disclosed, on April 15, the company and certain subsidiaries announced that they had filed voluntary Chapter 11 petitions for relief under the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas. The company's common stock has commenced trading on the OTC Pink marketplace under the symbol (YUMAQ).
Yuma Energy trading halted, news pending 06:5604/1604/16/20
Yuma Energy interim CEO Schnur resigns » 20:4204/1504/15/20
Effective on April 10,…
Effective on April 10, 2020, Anthony Schnur resigned from his positions as Interim CEO, CFO, and Chief Restructuring Officer of the Company. Shortly after with the effectiveness of Mr. Schnur's resignations, the Company engaged Ankura Consulting Group, LLC as its financial advisor. Mr. Schnur commented, "In 2019 and early 2020, we took proactive steps to recapitalize our Company's financial structure under a Credit Agreement with our lender YE Investment and a Restructuring and Exchange Agreement with Red Mountain Capital Partners LLC and certain of its affiliates including YE. Unfortunately, YE recently notified us that it was terminating the Credit Agreement due to the Company's failures to make timely interest payments and to comply with other covenants, and further, that it was also accelerating all payments due under the Credit Agreement so that all outstanding principal, accrued interest, fees and other obligations under the Credit Agreement became immediately due and payable. Simultaneous with the termination of the Credit Agreement, Red Mountain notified us that it was terminating the Restructuring Agreement. Although I am stepping down from my executive positions at the Company, I intend to actively oversee this restructuring process."
Yuma Energy files for voluntary Chapter 11 bankruptcy protection » 20:4004/1504/15/20
Yuma Energ together with…
Yuma Energ together with its subsidiaries Yuma Exploration and Production Company and The Yuma Companies announced that they have filed voluntary Chapter 11 petitions for relief under the United States Bankruptcy Code in the U.S. Bankruptcy Court for the Northern District of Texas. During the first quarter of 2020, Yuma's cash position deteriorated, and its cash flow from operations is no longer sufficient to cover its operating costs. The company plans to continue to operate its business in the normal course during the court-supervised bankruptcy process. The Debtors intend to use the Chapter 11 process to implement the orderly liquidation of their assets in an effort to maximize values and recoveries to stakeholders. The Debtors intend to seek immediate court approval to conduct an auction for substantially all of their assets, which primarily consist of operating and non-operating interests in several properties in Louisiana, Texas, Wyoming and Oklahoma. The auction is expected to occur within the first 90 days of the bankruptcy filings. The Debtors may negotiate to obtain a new Debtor-in-Possession financing to provide working capital to support normal operations and the sale of assets during the Chapter 11 process. However, it is not certain that these negotiations to obtain DIP financing will be successfully completed.
|Over a quarter ago|
Yuma Energy enters Into restructuring and exchange agreement » 07:2210/0210/02/19
Yuma Energy has entered…
Yuma Energy has entered into a Restructuring and Exchange Agreement with Red Mountain Capital Partners and its affiliates. YE Investment, an affiliate of Red Mountain, had purchased all of the company's outstanding senior secured bank indebtedness and related liabilities under the company's credit facility to reform Yuma's capital structure, address the company's liquidity needs, and regain compliance with the NYSE American listing standards. The company plans to vote on matters required to be approved by stockholders in connection with the transactions contemplated by the Restructuring Agreement. Interim CEO and Chief Restructuring Officer Anthony Schnur commented, "The Restructuring Agreement and the modification of the Credit Facility, will immediately reduce Yuma's debt-related and hedge liabilities by $34.7M, and increase Yuma's shareholder equity by the same amount. In addition, the anticipated conversion of the Series D Preferred Stock into common stock will eliminate a liquidation preference of approximately $23.8M. (...)" The Credit Facility has been modified to reduce the outstanding principal balance from approximately $32.8M, plus accrued and unpaid interest and expenses, to $1.4M with the forgiveness of approximately $31.4M plus the accrued and unpaid interest and expenses, increase the interest rate to 10% per annum payable monthly beginning in January 2020, and extend the maturity date to September 30, 2022. In addition, Hedge Liabilities in the amount of $750,000 have been eliminated. The company and YE will negotiate to enter into an amended and restated credit facility providing for up to $2.0M of availability with a maturity date of September 30, 2022. Upon stockholder approval, the Modified Note will be exchanged for a convertible note that will be convertible into approximately 10.9 million shares of Yuma common stock, which would represent approximately 70% of the outstanding shares on a pro forma basis. At the closing of the Restructuring Agreement, Red Mountain will have the right to nominate an aggregate of four directors to the company's Board of Directors. The company's financial statements for 2018 raise substantial doubt about the company's ability to continue as a going concern.
Yuma Energy agrees to settlement with former CEO » 16:1609/2509/25/19
Yuma Energy announced…
Yuma Energy announced that the company has executed a settlement agreement with Sam Banks, the former CEO of the company. Yuma made no admission of liability under the settlement agreement but agreed to fully settle the matter by way of compromise. The agreement resolves claims that Banks asserted against Yuma in relation to his termination. "This settlement represents another step in our restructuring process as it eliminates ongoing legal costs and unnecessary management time," said Anthony Schnur, Yuma's interim CEO and Chief Restructuring Officer. "We continue to seek to execute on our objectives of reducing our liabilities, lowering operational costs and improving our balance sheet."
Yuma Energy enters forbearance agreement with lender YE Investment » 18:5109/1709/17/19
Yuma Energy announced…
Yuma Energy announced that the company has entered into a Forbearance Agreement with YE Investment, an affiliate of Red Mountain Capital Partners LLC and the new lender under the company's reserve-based Credit Agreement. Under the terms of the Forbearance Agreement, the Lender has agreed to forbear from exercising its rights and remedies under the Credit Agreement as a result of the company not making scheduled interest payments due and payable on December 31, 2018, March 31, 2019, and June 30, 2019 and certain other defaults. The Forbearance Agreement extends until October 26, 2019 unless certain specified events occur.
Yuma Energy announces NYSE accepted plan to regain compliance » 16:1809/0309/03/19
Yuma Energy announced…
Yuma Energy announced that on August 30, the NYSE American accepted the Company's recently submitted plan to regain compliance with the continued listing standards of the Exchange. The Plan is in response to both compliance notices issued by the NYSE American which the Company previously announced on June 20 and on August 28. The Company now has until December 17, 2020 to regain compliance with the Exchange's continued listing standards, since it reported shareholders' equity of $2.4M on June 30, 2019, which is below the minimum standard of $4M, and reported losses from continuing operations and/or net losses in its five most recent fiscal years.
Yuma Energy receives second noncompliance notice from NYSE American » 16:2108/2808/28/19
Yuma Energy was notified…
Yuma Energy was notified by the NYSE American that the company is not in compliance with one of the Exchange's continued listing standards in that it reported shareholders' equity of $2.4M on June 30, which is below the minimum standard of $4M, and reported losses from continuing operations and/or net losses in its five most recent fiscal years. The Exchange also warned that the company may be close to falling below compliance which requires minimum shareholder's equity of $2. On June 20, the company received notice that it was not in compliance having reported a stockholders' equity of $5,998,045 and sustained continuing operations and/or net losses in its five most recent fiscal years. In order to maintain its listing on the Exchange, the company submitted a plan of compliance on July 16 and intends to supplement the plan to address how it intends to regain compliance with the continued listing standards by December 17, 2020. The notification does not affect the company's business operations or its SEC reporting obligations. Yuma is involved in restructuring discussions. Management continues to work with Seaport Global Securities, an investment banking firm, to advise the Company on various strategic alternatives. Until the company regains compliance, a ".BC" indicator will be affixed to the company's trading symbol.
Yuma Energy says has taken 'significant steps' to stop daily production decline » 07:2008/1908/19/19
Management said, "Yuma Energy provided an operational and corporate update and reported its 2019 second quarter financial results. During the second quarter, the company has taken significant steps to arrest the recent declines of our daily production. Specifically, we successfully installed a new jet pump on the Nettles 39-1 well, resulting in approximately 40 barrels a day of gross oil (bbl/d) or 15 bbl/d net production, up from 10 bbl/d gross prior to the workover. We also repaired the gravel pack on the State Lease 18194 well which has produced approximately 140 bbl/d gross, or 60 bbl/d net, for the most recent two weeks. Prior to the workover, the well was producing 90 bbl/d gross. We continue to diligently review our operations and evaluate opportunities to improve production where those activities result in short payback periods. The company also continues to reduce its operating and general and administrative costs and has significantly curtailed its planned 2019 capital expenditures. We plan to take further steps to mitigate our limited liquidity, which may include, but are not limited to, restructuring our existing debt; selling additional assets; further reducing general and administrative expenses; seeking merger and acquisition related opportunities and potentially raising proceeds from capital markets transactions, including the sale of debt or equity securities. Discussions regarding the restructuring of the company and its debt are ongoing, and management is hopeful that an accord can be reached. Management continues to work with Seaport Global Securities LLC, an investment banking firm, which advises the company on its strategic alternatives and is engaged in various discussions regarding its debt, potential acquisitions and other initiatives generally considered part of the restructuring process."