Turbulent Energy Market Send TXCO Into Ch. 11

Law360, New York (May 18, 2009, 12:00 AM EDT) -- Oil and gas giant TXCO Resources Inc. and numerous subsidiaries filed for Chapter 11 bankruptcy Monday, blaming volatile energy prices and difficulty raising cash to meet short-term commitments to its vendors.

According to its bankruptcy petition, filed in the U.S. Bankruptcy Court for the Western District of Texas, TXCO has $432 million in assets and $323 million in debts. The company said that it had been working to obtain new financing but ultimately had no choice except bankruptcy.

“Extreme volatility in energy prices and a deteriorating...
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