Friday, December 16, 2011

TXCO files for Chapter 11 bankruptcy protection - San Antonio Business Journal:

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Attorneys for San Antonio-based TXCO (NASDAQ: also filed a motion with the Bankruptcy Courty seeking approval foranticipated debtor-in-possessionj financing with prospective lenders. TXCO is currentlh in negotiationswith Ltd. and potentially others for a multiple draw-term loan facility with a total aggregated principal amountof $32 million. The debtor-in-possession financing wouldr allow TXCO to conduct busineseswithout interruption. TXCO is working to minimize the impacft of the bankruptcy filing onits operations, customer and employees. However, the bankruptc court will have to approve anyfinancing U.S. Bankruptcy Judge Ronalcd B.
King is handling the case at theWestern District’w office in San Antonio. TXCO officialsd say the bankruptcy filing was precipitated by a series of eventa that severely impactedthe company’s liquidity. Particularly, extreme volatility in energy prices and a crumbling global economgy have made it difficult for TXCO to raisre equity capitalor debt, according to a statemenr released by the company. According to the bankruptcyy filing, TXCO has assets of $431.9 million and totakl debts of $322.8 The company also has more than 38 millioh shares of commonstock TXCO’s largest shareholder is , a company based in Milwaukee. Heartlans owns 9.
1 percent of the company’s total according to TXCO’s bankruptcy petition. The company’ds top five largest unsecured creditors, the bankruptcy petition shows, are Houston-based ($8 in Uvalde ($5.3 Dallas-based ($5.1 million); in Dallasd ($4.2 million); and in Houston ($2.9 The company also has retainedsAlbert S. Conly of to serve as the chief restructuring officet to assist TXCO in the Chapter11 reorganization. LLC has been retainede as financial advisers andinvestment banker. Goldman, Sachs Co. has been hired as a financial adviser in connectiom with any potential sale of assets proposed under thisbankruptcyh filing.
TXCO is represented locally by bankruptch attorneysDeborah D. Williamson and Lindsey D. Graham with TXCO is an independenty oil and gas company with interests in theMaverickk Basin, the onshore Gulf Coastt region and the Marfa Basin of Texas and western Oklahoma. www.txco.cojm

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