Lilis Energy Inc. said its bank lending group agreed to extend payments to cure the company’s $25 million borrowing base deficiency—marking the second payment extension for the struggling Permian Basin operator so far this year.

According to a Feb. 6 news release, the due date for the Fort Worth-based company’s initial two payments, totaling $12.5 million, has been extended to Feb. 18 from Feb. 7. The initial payments were originally due Jan. 24. The final two installments of $6.25 million each continue to be due on March 16 and April 14.

Capital One Securities Inc. estimates Lilis generated a $3 million cash flow outspend in fourth-quarter 2019 and will outspend first-quarter 2020 cash flow by $6 million, analyst Richard Tullis wrote in a Feb. 7 research note.

Last month, Lilis received a non-binding cash take-private offer from Värde Partners Inc., one of the company’s major shareholders. The offer is valued at roughly $17 million, according to BMO Capital Markets.

In its proposal, Minneapolis-based alternative investment firm said it would acquire the roughly 75% of outstanding shares of Lilis common stock it doesn’t already own in a cash merger transaction for $0.25 per common share. The non-binding cash offer is set to expire Feb 17.

“The company is continuing to consider transactions to fund the repayment of the borrowing base deficiency on a timely basis.  ... If the company is unable to repay the borrowing base deficiency as and when required under the revolving credit agreement, an event of default would occur under the revolving credit agreement,” Lilis Energy said in the Feb. 6 release.

Lilis is receiving financial advice from Barclays Capital Inc. and BMO Capital Markets.