Disclosure Statement Approved in Texas International Bankruptcy
Knapschaefer, Johanna, THE JOURNAL RECORD
The modified version of the proposed plan, disclosure statement and ballots for voting on the plan will now be distributed among existing creditors and shareholders of Texas International.
Hearings on confirmation of the reorganization plan have been scheduled for Oct. 26 and 27. Objections should be filed by Oct. 6.
Although Texas International does not support the joint plan, it does not intend to block its confirmation, said Kwame Mumina, an attorney for Texas International.
"Management believes it would be difficult to satisfy the debt covenants under the plan without crippling ongoing business operations," Mumina said.
The oil and gas company filed a Chapter 11 reorganization petition on April 26, 1988. Its assets totaling $223.4 million consisted mainly of the stock of operating subsidiaries which are not in bankruptcies, the filing noted. Liabilities totaled $2.5 million.
Under the proposed plan, Texas International, which holds most of its assets in Egypt, will reorganize its finances under the name "The Phoenix Resource Companies Inc. …