Western National Balks At TXCO Ch. 11 Plan

Law360, New York (January 14, 2010, 1:49 PM EST) -- Western National Bank has objected to TXCO Resources Inc.'s Chapter 11 plan, saying it gives the creditor short shrift on an outstanding loan.

Midland, Texas-based Western National filed its two-page objection Wednesday in the U.S. Bankruptcy Court for the Western District of Texas. The bank complained that while the Chapter 11 plan lists it as an unimpaired creditor, the plan leaves it worse off than it would be under a Chapter 7 liquidation.

The plan will alter a loan agreement between TXCO and Western National to...
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