In Form 10-Q filed on August 8, 2017, EXCO Resources, Inc. announced operating and financial results for second quarter 2017. According to EXCO Resources, the Company’s liquidity is not expected to be sufficient to support the cash interest payments due under its outstanding indebtedness for the following twelve-month period or to repay the outstanding indebtedness due in 2018. If they cannot make scheduled cash payments on their debt, they will be in default and holders of the outstanding notes and loans could declare all outstanding principal and interest to be due and payable. Any event of default may cause a default or accelerate obligations could adversely affect the Company’s business, financial condition and results of operations. These factors raise substantial doubt about EXCO Resources ability to continue as a going concern. EXCO Resources further states that if they are unable to restructure their current obligations under the existing outstanding debt and address near-term liquidity needs, they may need to seek relief under the U.S. Bankruptcy Code. Read more on distressed companies.
About Kerry Mastroianni
Kerry Mastroianni, the editor of The Distressed Company Alert, has been researching distressed and bankrupt companies for over 18 years. As a 10-year employee of New Generation Research, she is also a data editor for Bankruptcy Week and the editor for our annual Bankruptcy Yearbook & Almanac. Prior to Kerry’s employment at NGR, she worked for eight years as a research analyst for KPMG’s corporate recovery practice.