FORT WORTH, Texas, Aug. 17, 2020 (GLOBE NEWSWIRE) -- Lilis Energy, Inc. (OTC Pink :LLEXQ), an exploration and production company operating in the Permian Basin of West Texas and Southeastern New Mexico, announced today that certain investment funds and entities affiliated with Värde Partners, Inc.have declined to pursue a new money investment in the Company to sponsor a chapter 11 plan of reorganization.

Therefore, in accordance with the terms of the Restructuring Support Agreement (the “RSA”) entered into among the Company and certain of its subsidiaries, all of the lenders under the Company’s existing RBL credit agreement, and the Värde Funds, as well as the Company’s debtor-in-possession financing facility, the Company will immediately begin pursuing a process to sell substantially all of its assets through the chapter 11 process, which may be pursuant to section 363 of the Bankruptcy Code or a chapter 11 plan. The proposed form of bidding procedures was previously filed with the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Court”) on July 13, 2020, and will be scheduled for hearing and approval by the Court on Friday, August 21 at 9:30 a.m. (prevailing Central Time).

“While the Company is disappointed that the Värde Funds declined to pursue the new money investment contemplated by the RSA,” said Joseph C. Daches, the Company’s Chief Executive Officer, President and Chief Financial Officer, “we are confident there will be significant interest in the Company’s highly contiguous block of approximately 16,000 net acres located in the deep and over-pressured portion of the Delaware Basin, including Winkler and Loving Counties in Texas and Lea County in New Mexico.”

More information regarding the formal bidding process will be made publicly available after the August 21 Hearing. Those interested in learning more about the sales process and the Company’s assets should contact the following

About Lilis Energy, Inc.

Lilis Energy, Inc. is a Fort Worth based independent oil and gas exploration and production company that operates in the Permian’s Delaware Basin, considered among the leading resource plays in North America. Lilis Energy’s current total net acreage in the Permian Basin is approximately 16,000 acres. For more information, please visit www.lilisenergy.com.