Monday March 8, 4:30 pm Eastern Time
Company Press Release
TransTexas Gas Solicits Noteholder Consents
HOUSTON--(BUSINESS WIRE)--March 8, 1999--TransTexas Gas Corporation (NYSE:TTG - news; ''TransTexas'') announced that as a result of sustained materially lower oil & gas prices and its resulting negative impact upon the Company's liquidity, the Company will engage Jefferies & Company Inc. to act as financial advisor to assist the Company in reviewing all potential strategic alternatives to improve its liquidity, including ongoing cost reduction measures, strategic alliances, asset sales and a recapitalization.
In connection with these measures, TransTexas and TransAmerican Energy Corporation (''TransAmerican''), TransTexas' corporate parent, announced the solicitation of consents from holders of TransTexas' Series D 13 3/4% Senior Subordinated Notes due 2001 and TransAmerican's 11 1/2% Senior Secured Notes and 13% Senior Secured Discount Notes, both due 2002 (collectively the ''Notes''). TransTexas and TransAmerican are seeking amendments to, and waivers under, the indentures governing the Notes with respect to certain existing and potential defaults to give the Company adequate time to implement its program designed to improve liquidity.
Holders of the Notes as of a record date of March 4, 1999 are requested to deliver their consents as soon as practicable, but in any event on or before 5:00 p.m., New York City Time, on March 12, 1999. The Consent Date for the TransTexas Senior Subordinated Notes will occur after the receipt by the Company of consents from holders of a majority of the outstanding principal amount of the Notes and for the TransAmerican Notes will occur after the receipt by the Company of consents from holders of an aggregate 66 2/3% of the outstanding principal amount of the Senior Secured Notes and the accreted amount of the Senior Secured Discount Notes.
Holders of the Notes may obtain additional information from the Solicitation Agent, Jefferies & Company Inc., (800/681-5700), or the Information Agent, D.F. King Inc. (800/207-3158).
TransTexas Gas is engaged in the exploration, production and transmission of natural gas and oil, primarily in South Texas, including the Eagle Bay field in Galveston Bay. For further information on the Company, please visit our web site at transtexasgas.com
Except for the historical information contained herein, the matters set forth in this news release may contain forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Potential risks and uncertainties include such factors as fluctuations in natural gas and crude oil pricing over which the Company has no control, the ultimate success of exploration drilling programs, the competitive nature of the oil and gas exploration, development and production industries and the uncertainties associated with the drilling, completing and operating of natural gas and oil wells. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission.
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