Exco Resources said it has formed a special committee to evaluate strategic alternatives including in-court or out-of-court restructuring.
The move would see Exco join dozens of US shale companies which have been forced to restructure debt after a near 60% slump in oil prices since mid-2014 eroded cash flows.
The Dallas-based company, valued at about $495million, had long-term debt of $1.32billion on March 31st according to a regulatory filing.
The company has reported a loss for the last five quarters in a row.
It is understood the special committee will also evaluate options such as divestitures and restructuring of its gathering, transportation and certain other contracts.