Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

EXCO Resources Chapter 11 Petition Filed

EXCO Resources (a/k/a TXOK Energy Resources Company) and 14 affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 18-30155. The Company, which is engaged in the exploration, exploitation, acquisition, development and production of onshore U.S. oil and natural gas properties, is represented by Marcus Alan Helt of Gardere Wynne Sewell. EXCO Resources notes that the Company continues to engage in "constructive discussions" with its creditor constituencies regarding the terms of a financial restructuring plan. A corporate release notes, "In conjunction with this process, EXCO will explore potential strategic alternatives to maximize value for the benefit of its stakeholders, including the marketing of the Company's assets, which may result in a sale of certain or substantially all of its assets under Section 363 of the Bankruptcy Code or as part of the plan of reorganization." EXCO Resources has received a commitment of $250 million in debtor-in-possession financing from certain of its existing lenders including Fairfax Financial Holdings and its affiliates; Bluescape Resources Company and its affiliates, including Cove Key Management; and JPMorgan Chase Bank and certain of its affiliates. The financing, which is subject to Court approval, is expected to refinance the Company's existing reserve-based credit agreement and support the Company's day-to-day operations during the restructuring process. Harold L. Hickey, EXCO Resources' C.E.O. and president, notes, "Like many other companies in our industry, EXCO's financial position has been negatively impacted by the sustained downturn in commodity prices and uncertainty in the energy market. Despite having taken actions to mitigate the impact of these factors, including renegotiating certain commercial contracts, reducing costs, restructuring our balance sheet and divesting assets, we continue to face increasing liquidity pressures as we navigate the competitive environment. We believe that this financial restructuring process will enable us to strengthen our balance sheet as we continue to operate in the ordinary course of business. With our strong asset base and operational expertise, we remain confident in our ability to deliver value for the benefit of our stakeholders."

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