EXCO Restructuring Plan: New Board Members, Hammer Midstreamers

EXCO.jpgLast week MDN told you that the board at EXCO Resources, a company in financial trouble, is considering “restructuring”–coded language for bankruptcy (see EXCO Resources Board Looks at “Restructuring” – Stock Nosedives). Yesterday EXCO provided an update on their efforts. We learn that the board itself is getting “streamlined”–meaning some board members have been fired and some new board members appointed (from investors who hold a lot of EXCO’s outstanding debt). The company also says it will “target an aggressive restructuring of gathering and transportation contracts”–which means the company is about to threaten midstream companies who have the misfortune of providing services to EXCO, that either those companies will reduce the price of their services, or risk not getting paid at all. Such is life in the rough and tumble world of oil and gas these days…

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