TGX PLAN OF REORGANIZATION APPROVED
TGX PLAN OF REORGANIZATION APPROVED SHREVEPORT, La., Jan. 10 /PRNewswire/ -- On Jan. 7, 1992, the
Bankruptcy Court entered a confirmation order approving the amended plan of reorganization (the plan) for TGX Corporation (TGX) which was jointly proposed by TGX, the Official Unsecured Creditors' Committee and the Official Equity Security Holders' Committee. The confirmation order will become effective 11 days after the entry of the order provided it has not been stayed on appeal.
Pursuant to the provisions of the plan, TGX will provide for (i) the payment in full of its secured debt by the issuance of new notes pursuant to the terms of a restructured credit agreement and (ii) the conversion of substantially all finally allowed unsecured debt to preferred equity with redemption and dividend provisions intended to provide for the payment in full of such unsecured debt over time. The plan also includes an optional cash discount treatment provision pursuant to which holders of certain unsecured debt may elect to receive an immediate, one-time cash payment equal to 37.5 percent of their finally allowed claims. If less than $5 million is raised to fund this optional cash discount treatment provision, such treatment will not be available to electing unsecured creditors. Currently, the funds are not available for the optional cash discount treatment. However, various alternatives to fund the optional cash discount treatment are being reviewed. The amount of finally allowed claims of unsecured creditors electing to convert their unsecured debt to preferred equity will be increased by 50 percent of contractual post-petition accrued interest related to such claims. On the effective date and pursuant to the provisions of the plan, the preferred and common stockholders will be deemed to select a new board of directors to be comprised of eight individuals to serve for three years. Two of the directors will represent the pre-petition equity security holders' interests. The voting rights allocation between the preferred and common stockholders will be 95 percent and 5 percent, respectively, with the voting rights of the preferred stock being reduced by 1.1875 percent for each million dollars of preferred stock redeemed or satisfied through the optional cash discount treatment provision. There will be certain protective covenants for common stockholders, effective for a period of two years after the effective date of the plan and pre-petition equity security holders are guaranteed two of eight for three years following confirmation. Reference is made to the plan and disclosure statement filed therewith for a detailed description of these matters. TGX is headquartered in Shreveport, La., and is engaged in the production of oil and gas reserves. TGX's common stock is currently traded on the NASDAQ stock market weekly bid and ask system under the symbol XTGXQ. -0- 1/10/92 /CONTACT: George McKellar, corporate secretary of TGX, 318-221-0707/ (XTGX) CO: TGX Corporation ST: Louisiana IN: OIL SU: RCN PS -- NY069 -- 8817 01/10/92 17:50 EST
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|Date:||Jan 10, 1992|
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