Lilis Energy, an oil and gas producer, announced on Monday that it filed for chapter 11 protection in Houston, TheStreet.com reported. Lilis operates in the Permian Basin of West Texas and Southeastern New Mexico. It has a restructuring agreement with many of its creditors and equity holders, including Varde Partners, the company said in a statement. Under the agreement, common shareholders would be wiped out. The plan, which must be approved by the bankruptcy court, would likely reduce Lilis’ funded debt obligations by more than $34.9 million. It has received a commitment from its bank lenders to provide up to $15.0 million in debtor-in-possession financing. The company anticipates up to $5.0 million will be available on an interim basis. The plan is contingent on Varde providing an equity commitment and additional debtor-in-possession financing. If Varde decides not to do so, or the restructuring plan isn’t pursued, Lilis will sell off its assets, the company said.
