TransCoastal Corporation filed joint prepackaged plan of reorganization and related disclosure statement in the US Bankruptcy Court on December 8, 2015. As per the plan filed, administrative claims, statutory fees, professional fees and post-petition tax claims shall be paid full in cash. Priority tax claims shall be paid in full in cash.

Ordinary course liabilities shall be paid pursuant to the payment terms and conditions of the particular transaction giving rise to the ordinary course liability. Secured claims of senior lender of $21.33 million shall receive in full satisfaction, 100% of the issued and outstanding new TC common interests as of the effective date and 100% of the new exit facility term loan. Secured tax claims shall receive cash equal to allowed amount of the claim, or deferred cash payments, or shall be reinstated.

Other secured claims shall either receive cash or reinstatement of legal, equitable and contractual rights of the claim. Priority non-tax claims shall receive in full satisfaction of claim, cash equal to the unpaid portion of the claim. General unsecured claims shall be paid cash for the unpaid portion of the claim.

Intercompany claims shall be reinstated in full or in part or cancelled or discharged in full or in part. TC-TX interests shall be canceled and extinguished and holders shall not be entitled to receive any distribution on account of such interests. CoreTerra interests shall be reinstated.

The plan will be funded through issuance of new TC common interests to the senior lender and issuance of exit facility term loan of $7 million at an interest of 7%.