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CIRCUIT COURT UPHOLDS LOWER COURT DECISION DENYING TRANSFER OF PENDING COLUMBIA GAS TRANSMISSION BANKRUPTCY LITIGATION

 WILMINGTON, Del., Aug. 23 /PRNewswire/ -- The Third Circuit Court of Appeals last Friday upheld a U.S. District Court decision denying a request by Columbia Gas Transmission Corporation's Unsecured Creditors' Committee to transfer pending litigation in Columbia Transmission's bankruptcy proceeding to the U.S. District Court for Delaware.
 The Third Circuit ruling allows the Bankruptcy Court for the District of Delaware to consider the merits of the Columbia Transmission Creditors' Committee complaint, filed in March 1992, that seeks to recharacterize $1.7 billion of Columbia Transmission debt securities held by The Columbia Gas System, Inc. (NYSE: CG), as equity and subordinate it to other unsecured debt, to recapture dividends and interest of approximately $500 million Columbia Transmission paid to the parent company, and to reverse a 1990 transfer of natural resource properties to another Columbia subsidiary. The issue of which court would hear the case has been pending since May 1992.
 The parent company has opposed the Columbia Transmission's Creditors' Committee complaint and has had a motion for summary judgment pending before the Bankruptcy Court since June 1992 seeking to dismiss the portions of the complaint that would recharacterize and subordinate the debt and recapture dividend and interest payments.
 The Columbia Gas System, Inc. and Columbia Gas Transmission Corp. have been operating as debtors-in-possession since they filed separate petitions for protection under Chapter 11 of the Federal Bankruptcy Code on July 31, 1991.
 /delval/
 -0- 8/23/93
 /CONTACT: H.W. Chaddock, 302-429-5261, or W.R. McLaughlin, 302-429-5443, or (financial), D.W. McFarland, 302-429-5363, or T.L. Hughes, 302-429-5471, all of Columbia Gas/
 (CG)


CO: Columbia Gas Transmission Corporation; The Columbia Gas System,
 Inc. ST: Delaware IN: OIL SU:


CC -- PH015 -- 5171 08/23/93 16:34 EDT
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Publication:PR Newswire
Date:Aug 23, 1993
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