TXCO Resources expects reorganization plan to take effect by Feb. 11

By Caroline Salls

Pittsburgh, Jan. 29 - TXCO Resources, Inc. expects its plan of reorganization to take effect by Feb. 11, according to an 8-K filed with the Securities and Exchange Commission.

As previously reported, the U.S. Bankruptcy Court for the Western District of Texas confirmed the company's asset sale-based plan on Wednesday.

The company originally filed two plans, one based on the proposed sale and the other for reorganization of its operations, which would be used if the sale was not completed.

Earlier this month, TXCO entered into a definitive agreement to sell a substantial portion of its assets to Anadarko E&P Co. LP.

The company said Andarko has agreed to buy the assets for total consideration of the lesser of $1 million more than the sum of the amounts needed to repay TXCO's lenders, pay all other creditors of TXCO in full and pay any cure amounts of executor contracts to be assumed by Anadarko; or $310 million in cash.

According to the plan confirmation order, if the sale is not completed, confirmation of the sale-based plan will be revoked.

TXCO, a San Antonio-based energy company, filed for bankruptcy on May 18, 2009. Its Chapter 11 case number is 09-51807.

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