Trustee Enters Fray Over TXCO Disclosure Statement

Law360, New York (December 16, 2009, 3:34 PM EST) -- The U.S. trustee has joined a number of creditors in voicing concern over bankrupt oil company TXCO Resources Inc.'s disclosure plan, which centers on the company's proposed sale to Newfield Exploration Co.

In a limited objection filed Tuesday, U.S. Trustee Charles F. McVay said he shares concerns expressed by other parties about the simultaneous balloting process proposed for the company's reorganization plan.

If TXCO's reorganization plan fails, parties likely will propose competing plans. But if the process proceeds as planned, creditors will be asked to vote...
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