CoServ Emerges From Bankruptcy; Agrees to Begin Repaying CFC.Business Editors HERNDON, Va.--(BUSINESS WIRE)--Dec. 13, 2002 Today, Denton County Electric Cooperative, d/b/a CoServ Electric CoServ Electric is a non-profit rural electric utility cooperative headquartered in Corinth, Texas. CoServ was organized in 1937 as the Denton County Electric Cooperative, and took its current DBA name (a shortened version of "cooperative services") in 1998. (CoServ), emerged from bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most . CoServ is an electric distribution cooperative located and serving approximately 75,000 customers in the Dallas (TX) metro area This article is about the music production team. For the article about population centers, see metropolitan area. Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani. . CoServ is also National Rural Utilities Cooperative Finance Corporation's (CFC CFC See: Controlled foreign corporation ) largest borrower. In June, CoServ and CFC filed a joint plan of reorganization with the U.S. Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. for the Northern District of Texas, Fort Worth Division. The general terms of the bankruptcy settlement include the following: -- CoServ has agreed to refocus on its core electric business and to make quarterly debt service payments to CFC for the term of the note. -- CoServ's telecom assets were transferred today to an entity controlled by CFC. -- CoServ's real estate development notes, certain assets and its interests in certain real estate development projects were transferred to entities controlled by CFC on October 11, 2002. -- All prior legal claims of CFC and CoServ have been released by the bankruptcy court. CoServ has agreed to begin servicing its obligations to CFC. Under the plan, CFC should recover the entire $1 billion of loan principal from CoServ through the transfer of assets The conveyance of something of value from one person, place, or situation to another. The law recognizes that persons are generally entitled to transfer their assets to whomever they wish and for whatever reason. The most common means of transfer are wills, trusts, and gifts. and the quarterly debt service payments. Based on its analysis, CFC believes that it is adequately reserved for any potential loss on its loans to CoServ. CFC is a not-for-profit finance cooperative that serves the nation's more than 1,000 electric cooperatives and their subsidiaries. With nearly $20 billion in assets, CFC provides its member-owners with an assured source of low-cost capital and state-of-the-art financial products and services. |
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