US energy company Lilis Energy (NYSE:LLEX) announced on Monday that it has filed for Chapter 11 bankruptcy.
The company is based in Fort Worth and is an independent oil and gas exploration and production company that operates in the Permian’s Delaware Basin.
In a statement put out by Lilis, they said that they have put in place a restructuring agreement with the majority of creditors, which includes Varde Partners. Varde will collectively own all of the company’s outstanding stock.
The restructuring agreement will see common shareholders in the company wiped out and reduce Lilis’s debt obligations.
In a statement Lilis said:
“The company expects to continue to operate in the ordinary course throughout the restructuring process without material disruption to vendors, suppliers and partners.”
The NYSE announced on Monday that it has commenced proceedings to delist the company’s common stock from its exchange and that trading the stock will be suspended immediately.
Lilis is just one of several US oil companies that have been in big trouble recently.
Only a day before Chesapeake energy announced they were filing for Chapter 11 bankruptcy.
The US shale industry has been heavily impacted by the collapse in oil prices, and we could see more companies in the industry follow the same path in the near future.