Lilis Energy, Inc. announced on June 29, 2020 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 (the "Court"). In the event the Värde Funds elect not to provide DIP financing and to make the equity investment in the Company or the Plan contemplated in the Restructuring Support Agreement (RSA) is not otherwise pursued, the RSA provides that the Company will pursue an agreed sales process with respect to its assets. The RSA is also subject to termination by the RBL Lenders and the Värde Funds in the event certain milestones in the reorganization process are not met.