Almost a year after it entered Chapter 11 bankruptcy,Houston-based TransTexas Gas Corp.’s reorganization plan tookeffect as the company arranged $52.5 million in exit financing.TransTexas amended its existing DIP Credit Agreement and RevolvingAccounts Receivable Credit Facility, cancelled existing securitiesand issued new securities. This is the final step in emergence fromChapter 11, which began April 19, 1999.

TransTexas voluntarily filed for Chapter 11 and said it expecteda successful recapitalization with parent TransAmerican EnergyCorp. For the nine months ended Oct. 31, 1998, including the effectof asset impairments of $186.7 million, TransTexas reported a netloss of $155.4 million on revenues of $137.7 million compared tonet income of $247 million on revenues of $695 million for theyear-ago period, which included a gain of $540.4 million on thesale of the company’s Lobo Trend subsidiary.

On the effective date of the bankruptcy, existing securities,including a $450 million senior secured note, $115.8 million ofsubordinated notes and all of its issued and outstanding shares ofcommon stock were cancelled. The company issued $200 million in newsenior secured notes, $222.46 million of new senior preferredstock, $20.72 million of new junior preferred stock, 1.250 millionshares of new common stock, 625,000 warrants to purchase additionalshares of new common stock, and $21.84 million in cash to theholders of the senior secured note claim.

©Copyright 2000 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.