Shareholders Seek to Oust Two Exco Directors
May 19 2016 - 12:20PM
Dow Jones News
Three of Exco Resources Inc.'s largest shareholders are seeking
to oust two directors serving on a committee that is weighing
bankruptcy and other strategic options for the struggling
oil-and-gas producer, according to people familiar with the
matter.
WL Ross & Co., Canadian insurance magnate Prem Watsa and
Bluescape Resources Co. have voted to withhold their support for
Jeffrey Benjamin and Jeffrey Serota, two of the three members on
the recently formed special committee, the people said.
The committee is assessing the Exco's financial situation and
exploring strategic alternatives including swapping debt for
equity, selling assets and restructuring, either in or out of
court.
The persistent slump in natural gas prices has weighed on Exco,
whose stock price has fallen 65% over the past year and recently
traded at 56 cents. WL Ross is the company's largest shareholder,
with an 18% stake as of March 31, according to FactSet. A fund
controlled by Mr. Watsa held 9% as of March 31, while Bluescape
owned 6.2% as of Dec. 31.
The shareholders' move threatens to complicate the committee's
efforts. Exco's board rules compel directors to offer their
resignation if they receive more "withhold" votes than votes in
their favor, according to regulatory filings. Exco's annual
meeting, at which directors are up for re-election, was slated to
begin Thursday.
Write to Matt Jarzemsky at matthew.jarzemsky@wsj.com
(END) Dow Jones Newswires
May 19, 2016 12:05 ET (16:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Invesco (NYSE:IVZ)
Historical Stock Chart
From Mar 2024 to Apr 2024
Invesco (NYSE:IVZ)
Historical Stock Chart
From Apr 2023 to Apr 2024
