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 Bankruptcgy Court seeking approval foranticipated debtor-in-possession financing with prospectivwe lenders. TXCO is currently in negotiationsswith Ltd. and potentially others for a multiples draw-term loan facility with a total aggregate principal amountof $32 The debtor-in-possession financing would allow TXCO to conduc t business without interruption. TXCO is workiny to minimize the impact of the bankruptcy filingy onits operations, customers and However, the bankruptcy court will have to approve any financing arrangement. U.S. Bankruptc Judge Ronald B.
King is handling the case at theWesterb District’s office in San Antonio. TXCO officials say the bankruptct filing was precipitated by a series of eventse that severely impactedthe company’s liquidity. Particularly, extreme volatility in energt prices and a crumbling global economgy have made it difficulr for TXCO to raise equity capitalkor debt, according to a statement releasedd by the company. According to the bankruptcy TXCO has assetsof $431.9 million and totalo debts of $322.8 million. The company also has more than 38 million shares of commonstocjk outstanding. TXCO’s largest shareholder is , a compang based in Milwaukee. Heartland owns 9.
1 percentr of the company’s total stock, according to TXCO’s bankruptct petition. The company’s top five largest unsecured creditors, the bankruptcu petition shows, are Houston-based ($8 million); in Uvalde ($5.3 Dallas-based ($5.1 million); in Dallasd ($4.2 million); and in Houstobn ($2.9 million). The companuy also has retainedAlbert S. Conly of to servd as the chief restructuring officerd to assist TXCO in the Chapter 11 LLC has been retained as financial advisersd andinvestment banker. Goldman, Sachas & Co. has been hired as a financiaol adviser in connection with any potential sale of assetzs proposed under thisbankruptcy filing.
TXCO is represented locally by bankruptcy attorneysDeborah D. Williamson and Lindsey D. Grahanm with TXCO is an independenf oil and gas company with interests in theMavericlk Basin, the onshore Gulf Coast regiojn and the Marfa Basin of Texaz and western Oklahoma. www.txco.com