Printer Friendly

ADDITIONAL SUPPORT ANNOUNCED FOR CENTRAL AND SOUTH WEST/EL PASO ELECTRIC PLAN

 DALLAS, July 7 /PRNewswire/ -- Central and South West Corporation (NYSE: CSR) announced today that the banks providing letters of credit associated with the Maricopa and Farmington pollution control bonds of El Paso Electric Company (NASDAQ: ELPAQ) have committed to support El Paso Electric's proceeding with its reorganization plan, which would make it a wholly owned subsidiary of Central and South West.
 The banks include Citibank, N.A., Credit Suisse, Canadian Imperial Bank and Westpac.
 They have agreed to file motions in the U.S. Bankruptcy Court for the Western District of Texas in Austin supporting the previously filed motions of other creditor groups.
 Those motions, filed by the Official Committee of the Unsecured Creditors and the unofficial committee of the first and second bondholders, support El Paso Electric's exclusive right to proceed with its reorganization plan and urge that the plan be confirmed expeditiously.
 "We are very pleased with these banks' decision to support our plan, particularly in the face of our competition's recent efforts to convince the creditors that its plan is more attractive," said Dick Brooks, chairman, president and chief executive officer of Central and South West. "We believe that the significance of the banks' action speaks for itself and confirms that our plan is the one seen as the most worthy by the creditors and therefore the one most likely to succeed.
 "We believe that this action also demonstrates the growing resolve among creditors to end this costly and time-consuming process and bring El Paso out of bankruptcy as soon as possible," Brooks said.
 "El Paso Electric's board of directors and management are particularly pleased with Central and South West's ability to continue to gain consensual support from El Paso Electric's various creditor groups," said David H. Wiggs Jr., El Paso Electric's chairman, president and chief executive officer. "Based on Central and South West's financial strength, stability and integrity, we strongly believe that our proposed merger with Central and South West is the best alternative in obtaining the greatest estate value for El Paso Electric and obtaining the highest possible recovery by all El Paso Electric constituencies, including shareholders."
 The letter of credit banks for the Farmington and Maricopa pollution control bonds agreed to support El Paso Electric's proceeding with its reorganization plan after negotiating a package of economic enhancements to the plan now on file in the bankruptcy court. The reorganization plan calls for the issuance of new letters of credit by the letter-of- credit banks which will make it possible for the Farmington and Maricopa pollution control bonds to be reinstated upon the bonds' pre-bankruptcy terms and conditions. The pollution control bonds represent approximately 10 percent, or $200 million, of the outstanding bankruptcy claims against El Paso Electric.
 Central and South West Corporation, a Dallas-based public utility holding company, owns four electric utility subsidiaries that serve portions of Texas, Oklahoma, Louisiana and Arkansas. It also owns an Oklahoma intrastate natural gas pipeline subsidiary and four other subsidiaries.
 -0- 7/7/93
 /CONTACT: Gerald R. Hunter, director of corporate communications, Central and South West Corporation, 214-777-1165/
 (CSR ELPAQ)


CO: Central and South West Corporation; El Paso Electric Company ST: Texas IN: UTI SU: TNM

LR -- NY059 -- 9164 07/07/93 15:35 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 7, 1993
Words:537
Previous Article:REXALL SUNDOWN ANNOUNCES THIRD QUARTER RESULTS
Next Article:ITT ELECTS KLAUS LEDERER AND THOMAS WALKER VICE PRESIDENTS
Topics:


Related Articles
EL PASO ELECTRIC CONFIRMS DISCUSSIONS WITH CENTRAL AND SOUTH WEST CORPORATION
CENTRAL AND SOUTH WEST CORPORATION SAYS IT IS DISCUSSING A REORGANIZATION PLAN WITH EL PASO ELECTRIC AND CREDITORS COMMITTEES
UNSECURED CREDITORS ANNOUNCE SUPPORT FOR CENTRAL AND SOUTH WEST CORPORATION MERGER WITH EL PASO ELECTRIC COMPANY
FIRST AND SECOND MORTGAGE BONDHOLDERS ANNOUNCE SUPPORT FOR CENTRAL AND SOUTH WEST CORPORATION MERGER WITH EL PASO ELECTRIC COMPANY
FEDERAL BANKRUPTCY COURT APPROVES CRITICAL MEASURE FOR PLAN TO REORGANIZE EL PASO ELECTRIC COMPANY
BANKRUPTCY COURT APPROVES EPE'S THIRD AMENDED DISCLOSURE STATEMENT; SETS DATES FOR BALLOTING AND CONFIRMATION HEARINGS
PUBLIC UTILITY COMMISSION OF TEXAS ADMINISTRATIVE LAW JUDGES ISSUE FINDINGS IN EL PASO ELECTRIC COMPANY RATE AND MERGER CASES
EPE ANNOUNCES INTERIM ORDER IN DOCKET 12700: PUCT ADOPTS MAJORITY OF HEARING EXAMINERS' RECOMMENDATIONS
EL PASO ELECTRIC COMPANY FILES WITH NEW MEXICO PUBLIC UTILITY COMMISSION FOR AUTHORIZATION TO ISSUE SECURITIES IN MERGER
CENTRAL AND SOUTH WEST CORPORATION REPORTS SENDING EL PASO ELECTRIC COMPANY BREACH LETTER

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters