HOUSTON, Sept. 17, 2019 /PRNewswire/ -- Yuma Energy,
Inc. (NYSE American:YUMA) ("Yuma," the "Company," "we" or "our")
today announced that the Company has entered into a
Forbearance Agreement with YE Investment LLC (the "Lender"), an
affiliate of Red Mountain Capital Partners LLC ("Red Mountain") 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. All interest and principal amounts
that would have been payable by the Company shall accrue and be
deferred until the expiration or termination of the Forbearance
Agreement.
The Forbearance Agreement provides Yuma the time required to
address the restructuring goals previously outlined by the Company
and Red Mountain in the Company's press release dated September 10, 2019. In connection with the
proposed restructuring, Yuma's senior management will conduct a
thorough review of its balance sheet with a plan to reduce the
Company's overall liabilities including its outstanding debt and
trade payables. Any modification of the Senior Secured Debt
on mutually agreeable terms will be subject to the Company making
progress on these objectives.
"Today's announcement is an important step in the restructuring
process announced last week. By operating under the
Forbearance Agreement, the Company can focus on its efforts to
restructure its balance sheet," said Anthony C. Schnur, Yuma's Interim Chief
Executive Officer and Chief Restructuring Officer. "While
working through the restructuring process, the Company plans to
continue to evaluate various strategic options to preserve the
value of its business. The Forbearance Agreement will allow
the Company, the Lender, and their respective legal and financial
advisors to evaluate these various strategic options."
Continuing Uncertainty
The Company's audited
consolidated financial statements for the year ended December 31, 2018, included a going concern
qualification. The risk factors and uncertainties described in our
Securities and Exchange Commission ("SEC") filings for the year
ended December 31, 2018, the quarter
ended March 31, 2019, and the quarter
ended June 30, 2019 raise substantial
doubt about the Company's ability to continue as a going
concern.
About Yuma Energy, Inc.
Yuma Energy, Inc., a
Delaware corporation, is an
independent Houston-based
exploration and production company focused on acquiring, developing
and exploring for conventional and unconventional oil and natural
gas resources. Historically, the Company's activities have
focused on inland and onshore properties, primarily located in
central and southern Louisiana and
southeastern Texas. Its common stock is listed on the NYSE
American under the trading symbol "YUMA."
Forward-Looking Statements
This release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). Any and all statements that are not strictly
historical statements constitute forward-looking statements and may
often, but not always, be identified by the use of such words such
as "expects," "believes," "intends," "anticipates," "plans,"
"estimates," "potential," "possible," or "probable" or statements
that certain actions, events or results "may," "will," "should," or
"could" be taken, occur or be achieved. The Company's annual report
on Form 10-K for the year ended December 31,
2018, quarterly reports on Form 10-Q, recent current reports
on Form 8-K, and other SEC filings discuss some of the important
risk factors identified that may affect its business, results of
operations, and financial condition. The Company undertakes no
obligation to revise or update publicly any forward-looking
statements, except as required by law.
For more information, please contact
M. Carol Coale
Managing Director
Dennard Lascar Investor
Relations
1800 West Loop South, Suite 200
Houston, TX 77027
713-529-6600
ccoale@dennardlascar.com
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SOURCE Yuma Energy, Inc.