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

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Attorneys for San Antonio-based TXCO (NASDAQ: TXCO) also filed a motion with the Bankruptcyh Court seeking approval foranticipated debtor-in-possession financing with prospectivew lenders. TXCO is currently in negotiationswith Ltd. and potentiallh others for a multiple draw-term loan facility with a totalk aggregate principal amountof $32 million. The debtor-in-possession financing woulfd allow TXCO to conduct businesswithoutg interruption. TXCO is working to minimize the impacft of the bankruptcy filing on its customersand employees. However, the bankruptcy court will have to approvew anyfinancing arrangement. U.S. Bankruptcy Judge Ronald B.
King is handling the case at theWestern District’s office in San TXCO officials say the bankruptcy filinfg was precipitated by a series of evente that severely impacted the company’ds liquidity. Particularly, extreme volatility in energy pricees and a crumbling global economy have made it difficulft for TXCO to raise equity capitaloor debt, according to a statement released by the According to the bankruptcy TXCO has assets of $431.9 million and totalo debts of $322.8 million. The compant also has more than 38 million shares of commonbstock outstanding. TXCO’s largest shareholder is , a companyu based in Milwaukee. Heartland owns 9.
1 percent of the company’se total stock, according to TXCO’s bankruptcy The company’s top five largest unsecured the bankruptcypetition shows, are Houston-based ($8 in Uvalde ($5.3 million); Dallas-based ($5.q1 million); in Dallas ($4.2 million); and in Houstonh ($2.9 million). The company also has retaineedAlbert S. Conly of to serves as the chief restructuring officer to assisf TXCO in the Chapter 11 reorganization. LLC has been retained as financial advisersd andinvestment banker. Goldman, Sachs & Co. has been hired as a financialp adviser in connection with any potential sale of asset proposed under thisbankruptcy filing.
TXCO is represented locallyt by bankruptcy attorneysDeborah D. Williamson and Lindseyt D. Graham with TXCO is an independent oil and gas company with interests in theMavericjk Basin, the onshore Gulf Coasy region and the Marfa Basin of Texas and westerjn Oklahoma. www.txco.com