A Chapter 11 reorganization petition listing $163 million in
unsecured debt was filed Tuesday by Texas International Co. of
Oklahoma City in U.S. Bankruptcy Court for Western Oklahoma.
In the petition, Texas International said the debt was owed to
about 1,500 creditors. Its assets, totaling $223.4 million,
consisted primarily of the stock of operating subsidiaries.
The company listed other liabilities totaling $2.5 million held
by about 20 creditors and also listed 80,050,711 shares of common
stock held by about 15,800 stockholders.
"It is time to complete our debt restructuring, which we began
several years ago," said Texas International Chairman and Chief
Executive Officer James A. Kishpaugh. "At this stage, the most
efficient and fair procedure for all concerned is provided under
"Our subsidiaries' operations will continue uninterrupted while
the reorganization is completed."
In over-the-counter trading Tuesday, Texas International stock
closed at 1/2, down 1/8.
This was the latest of a series of up and down events for Texas
International, which had announced in March that it had acquired
five Egyptian oil concessions in addition to the pioneer concession
awarded it in 1980.
While that news was well-received, just the month before, on
Feb. 29, the company had suspended payments on $155 million in debt
owed to various creditors, blaming the cash flow problem on previous
Egyptian concessions acquired years ago.
That was was followed by year-end results for 1987, showing
Texas International lost millions of dollars for the second straight
year. The company lost $44.2 million, or 65 cents per share, in
1987, following a net loss of $50.79 million in 1986. Revenues were
down 43.6 percent in 1987 to $35.9 million.
In March, company officials said the $155 million overall debt
was generating too much interest for them to handle, given their
dwindling cash flow situation.
"The problem," spokesman James F. Gregory said at the time, "is
we're not generating enough cash flow from our Egyptian assets" to
have the flexibility to handle both the current debt and move ahead
with the company's exploration plans.
Gregory deviated little from the prepared text of a statement
released early Tuesday when the company filed its papers in the
bankruptcy court clerk's office.
He did reiterate that Chapter 11 reorganization "affords us the
most fair way to deal with the people we have to deal with and
affords us an expeditious way" to deal with the massive debt load. …