Red Mountain Capital Buys Yuma Energy Debt, Signs Letter of Intent for Restructuring
September 10 2019 - 7:17PM
Dow Jones News
By Josh Beckerman
Yuma Energy Inc. (YUMA), which said in May 2018 that it would
explore strategic alternatives, said Red Mountain Capital Partners
bought the company's senior secured bank debt and has signed a
non-binding letter of intent for a potential restructuring
agreement.
Red Mountain bought about $35 million of bank debt and related
liabilities from Yuma's lending group, led by Societe Generale.
Yuma Energy shares rose 26% after hours to $2.31.
The oil and gas company said the move "is the first step toward
strengthening our capital base, improving our liquidity and
positioning the company to pursue growth opportunities."
The letter of intent calls for Red Mountain and Yuma to work
toward a restructuring approved by Yuma's board by Sept. 30, and
would include the exchange of senior secured debt for debt
convertible into newly issued Yuma common stock.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
September 10, 2019 19:02 ET (23:02 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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