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Lilis Energy Files For Chapter 11 Bankruptcy - Quick Facts

Lilis Energy, Inc. (LLEX) announced Monday that it has filed petitions under Chapter 11 of the United States Bankruptcy Code to initiate voluntary cases 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 among the Company and certain of its subsidiaries, certain investment funds and entities affiliated with Värde Partners, Inc., which collectively own all of the Company's outstanding preferred stock and debt.

Under the RSA, the companies have agreed to support a restructuring of Lilis Energy and its subsidiaries under a Chapter 11 plan of reorganization. This 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 Company expects to continue to operate in the ordinary course throughout the restructuring process without material disruption to vendors, suppliers and partners.

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 (DIP) financing. Otherwise, the Company will pursue an agreed sales process with respect to its assets.

With the filing, and subject to court approval, the Company has received a commitment from its bank lenders under its Credit Agreement to provide up to $15.0 million in DIP financing. The Company anticipates up to $5.0 million will be available on an interim basis.

On June 27, 2020, Markus Specks resigned as a director of the Company and was replaced by Nicholas Winter, a Managing Director of Värde Partners, Inc., as their new designated director.

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