(Applies to: TTG)
TransTexas Gas Solicits Noteholder Consents
HOUSTON (March 8) BUSINESS WIRE -March 8, 1999--TransTexas Gas
Corporation (NYSE:TTG) ("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.
-0- SCP/ho*
CONTACT: TransTexas Gas Corporation, Houston
Simon Ward, 281/987-8600
Fax: 281/986-8865
ir@transtexasgas.com
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