TXCO, Creditors Defy Bank's Bid To Seize Rigs

Law360, New York (August 31, 2009, 1:11 PM EDT) -- TXCO Resources Inc. has teamed up with the bankrupt oil and gas company’s creditors in opposition to Western National Bank’s bid to lift the automatic stay and foreclose on three drilling rigs in order to collect hundreds of thousands of dollars in mounting debt.

The debtor and its official committee of unsecured creditors filed an objection Friday to Western National’s attempt to take over the three rigs, telling Judge Ronald B. King of the U.S. Bankruptcy Court for the Western District of Texas that the bank...
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