Texaco filed for bankruptcy in 1987 and became the largest U.S. bankruptcy at that time.
The filing followed a legal dispute with Pennzoil over Texaco’s attempted acquisition of Getty Oil. A Texas jury awarded Pennzoil $10.3 billion in damages, later reduced on appeal. Texaco sought protection under Chapter 11 on April 12, 1987, to prevent immediate enforcement while it reorganized.
The case was among the most important corporate bankruptcies of the 1980s. Texaco eventually settled with Pennzoil and emerged from bankruptcy in 1988. The company continued operating as a major oil producer and refiner.
Texaco is often confused with Chevron because Chevron acquired Texaco in 2001. That later merger did not cause the 1987 bankruptcy; the immediate crisis came from the Pennzoil litigation.