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 motioh with the Bankruptcy Court seeking approval foranticipatecd debtor-in-possession financing with prospective lenders. TXCO is currently in negotiationszwith Ltd. and potentially others for a multiple draw-term loan facilityu with a total aggregate principaol amountof $32 million. The debtor-in-possessionn financing would allow TXCO to conduct businesswwithout interruption. TXCO is workin to minimize the impact of the bankruptc filing onits operations, customers and employees. the bankruptcy court will have to approve anyfinancing U.S. Bankruptcy Judge Ronald B.
King is handling the case at theWesterm District’s office in San Antonio. TXCO officials say the bankruptch filing was precipitated by a series of eventws that severely impactedthe company’ s liquidity. Particularly, extreme volatility in energy prices and a crumbling global economy have made it difficuly for TXCO to raise equity capitalor debt, according to a statemenyt released by the company. According to the bankruptcuy filing, TXCO has assets of $431.0 million and total debtd of $322.8 million. The company also has more than 38 millio shares of common stock outstanding. TXCO’s largest shareholder is , a companu based in Milwaukee. Heartland owns 9.
1 percent of the company’zs total stock, according to TXCO’s bankruptcy The company’s top five largest unsecured creditors, the bankruptcy petitiojn shows, are Houston-based ($8 in Uvalde ($5.3 million); Dallas-based ($5.1 in Dallas ($4.2 million); and in Houston ($2.9 million). The company also has retainefdAlbert S. Conly of to serve as the chiecf restructuring officer to assist TXCO in the Chapteer11 reorganization. LLC has been retained as financial advisers andinvestmentr banker. Goldman, Sachs Co. has been hired as a financial advised in connection with any potentia sale of assets proposed undet thisbankruptcy filing.
TXCO is represented locally by bankruptcy attorneysDeborah D. Williamson and Lindsey D. Graham with TXCO is an independeng oil and gas company with interests in theMaverickm Basin, the onshore Gulf Coast region and the Marfa Basinh of Texas and western Oklahoma. www.txco.com