Texas International Files Bankruptcy / Chapter 11 Petition Lists $163 Million in Unsecured Debt
Driskill, Matt, THE JOURNAL RECORD
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 Chapter 11."
"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. …