EXCO Resources, Inc. yesterday filed for chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas, according to a press release. EXCO intends to operate in the ordinary course of business during the restructuring process. EXCO continues to engage in discussions with its creditor constituencies regarding the terms of a financial restructuring plan. In conjunction with this process, EXCO said that it will explore potential strategic alternatives to maximize value for the benefit of its stakeholders, including the marketing of the company’s assets, which may result in a sale of certain or substantially all of its assets under §363 or as part of the plan of reorganization. EXCO has received a commitment of $250 million in debtor-in-possession financing from some of its existing lenders including Fairfax Financial Holdings Limited and its affiliates; Bluescape Resources Company LLC and its affiliates, including Cove Key Management; and JPMorgan Chase Bank, N.A., and certain of its affiliates.
