TransCoastal Corporation Files For Bankruptcy in Dallas, Texas

On December 8, 2015, TransCoastal Corporation and CoreTerra Operating, LLC (collectively, “TransCoastal” or the “Debtors”) filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Northern District of Texas, Dallas Division.  According to the declaration of TransCoastal’s Chief Executive Officer, Stuart G. Hagler (the “Hagler Declaration”), TransCoastal enters bankruptcy with a prepackaged plan to, among other things deleverage its balance sheet by converting $21 million of outstanding loans and obligations into 100% of the new equity in the reorganized TransCoastal.Eighty percent (80%) of TransCoastal’s operations are located in the Pampa region. TransCoastal has over 6,000 acres of oil and gas leases primarily in Stephens, Montague, Gray, Carson and Hutchison counties in West Texas. See Hagler Declaration at 13.The Debtors liabilities total approximately $21.42 million, the bulk of which (21.33 million) is owed pursuant to a May 2011 Prepetition Loan Agreement with Melody Business Finance, LLC which succeeded Green Bank, N.A. (the “Senior Lender”) under the Loan Agreement by purchase and assignment.  See Hagler Declaration 10-11.The Debtors are seeking to have their bankruptcy cases jointly administered under the lead bankruptcy case captioned In re TransCoastal Corporation, et al., Case No. 15-34956.  The bankruptcy cases have been assigned to Judge Harlin D. Hale.A copy of the Hagler Declaration can be accessed here: Download Hagler Declaration.For further information, please contact a Thompson & Knight Bankruptcy and Restructuring Attorney. For more information on the Thompson & Knight’s Bankruptcy and Restructuring Practice, please visit www.tklaw.com/bankruptcy-and-restructuring/.