Exco Resources files reorganization plan; exclusive periods extended

By Caroline Salls

Pittsburgh, Oct. 3 – Exco Resources, Inc. filed a plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

The company said the plan provides for a reorganization of the Exco debtors as a going concern with a significant reduction in long-term debt and a stronger, de‑levered balance sheet.

Under the plan, holders of 1.5-lien notes claims will receive either 1.5-lien takeback debt or payment in full in cash without payment of any premium or “make-whole” amount.

Holders of 1.75-lien term loan facility claims will receive 82% of the new common stock of the reorganized company, subject to dilution by a management incentive plan.

The recovery for holders of second-lien term loan facility claims was not disclosed.

Holders of unsecured notes claims and general unsecured claims will receive an unsecured settlement recovery, which includes 18% of the new common stock, subject to dilution by the management incentive plan and $15.35 million in cash.

Holders of convenience claims will receive a share of $5 million in cash.

Raider Marketing claims will be deemed cancelled, and holders will receive no distribution.

The company said plan distributions will be funded with cash on hand, exit financing, applicable 1.5-lien takeback debt, new common stock and director and officer proceeds.

In addition, Exco entered into a stipulation under which its exclusive plan-filing period was extended through Dec. 31 from Oct. 15 and its exclusive plan-vote solicitation period through March 1 from Dec. 14.

The extension was agreed to by the company’s junior secured parties and the official committee of unsecured creditors appointed in its Chapter 11 cases.

Exco is a Dallas-based oil and gas exploration and production company operating in Texas, North Louisiana and Appalachia. The company filed for bankruptcy on Jan. 15, 2018 under Chapter 11 case number 18-30155.

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