* To borrow up to $12.5 mln from $32 mln DIP facility
* Court approves all first-day motions
* Receives delisting notice from Nasdaq
* Shares down 8 percent in after-hours trading
May 22 (Reuters) - TXCO Resources Inc, which filed for Chapter 11 bankruptcy protection on Monday, said it received court approval to borrow up to $12.5 million under its proposed $32 million debtor-in-possession (DIP) credit facility.
Shares of the oil and gas company fell 8 percent to 35 cents in after-hours trading. They had closed at $0.38 Friday on Nasdaq.
Tumbling energy prices over the past year and a lack of credit has pushed some U.S. energy companies into Chapter 11 bankruptcy, TXCO being the latest in a string of such filings.
TXCO said, the bankruptcy court had also approved the company's other 'first-day motions,' which provide for continued payment of employee wages and other compensation, royalties and the use of its cash collateral and cash management systems.
TXCO said it also received a delisting notice from the Nasdaq Stock Market, suspending trading of the company's stock on The Nasdaq Global Select Market effective May 28.
The company, which is seeking a listing on the over-the-counter bulletin board (OTCBB), said its stock will be quoted on the pink sheets over-the-counter (OTC) market in the interim.
The company, which filed for bankruptcy protection in the court for the Western District of Texas had also removed its chief financial officer and chief operating officer last week in a bid to cut costs.
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(Reporting by Shradhha Sharma in Bangalore; Editing by Aradhana Aravindan) Keywords: TXCORESOURCES/ (shradhha.sharma@thomsonreuters.com; within U.S. +646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:shradhha.sharma.reuters) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Court approves all first-day motions
* Receives delisting notice from Nasdaq
* Shares down 8 percent in after-hours trading
May 22 (Reuters) - TXCO Resources Inc, which filed for Chapter 11 bankruptcy protection on Monday, said it received court approval to borrow up to $12.5 million under its proposed $32 million debtor-in-possession (DIP) credit facility.
Shares of the oil and gas company fell 8 percent to 35 cents in after-hours trading. They had closed at $0.38 Friday on Nasdaq.
Tumbling energy prices over the past year and a lack of credit has pushed some U.S. energy companies into Chapter 11 bankruptcy, TXCO being the latest in a string of such filings.
TXCO said, the bankruptcy court had also approved the company's other 'first-day motions,' which provide for continued payment of employee wages and other compensation, royalties and the use of its cash collateral and cash management systems.
TXCO said it also received a delisting notice from the Nasdaq Stock Market, suspending trading of the company's stock on The Nasdaq Global Select Market effective May 28.
The company, which is seeking a listing on the over-the-counter bulletin board (OTCBB), said its stock will be quoted on the pink sheets over-the-counter (OTC) market in the interim.
The company, which filed for bankruptcy protection in the court for the Western District of Texas had also removed its chief financial officer and chief operating officer last week in a bid to cut costs.
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(Reporting by Shradhha Sharma in Bangalore; Editing by Aradhana Aravindan) Keywords: TXCORESOURCES/ (shradhha.sharma@thomsonreuters.com; within U.S. +646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:shradhha.sharma.reuters) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.