Columbia Western Inc./Pine Brook Capital news.

PORTLAND, Ore.--(BUSINESS WIRE)--Dec. 15, 1995--Columbia Western Inc. (formerly Riedel Environmental Technologies Inc.), which filed for protection under Chapter 11 of the U.S. Bankruptcy Code on May 17, 1995, and Pine Brook Capital Inc. (Pine Brook), a newly formed company, announced the occurrence on Dec. 12, 1995, of the effective date of Columbia Western's plan of reorganization (the plan).

The plan was accepted by more than 97 percent of all creditors and interest holders who voted on the plan. Under the plan, all of the creditors of Columbia Western holding secured claims, priority tax claims, priority wage claims and administrative expense claims will be paid in full.

Pursuant to the plan, Columbia Western's general unsecured creditors were given the option of receiving either cash or stock of Pine Brook, or a combination thereof, in exchange for their claims.

Each unsecured creditor who elected or was deemed to have elected to receive Pine Brook stock will receive one share of Pine Brook common stock for each $3.50 of its allowed claim; those who elected to receive cash will receive their pro rata share of available cash from Development Specialists Inc., the consummation agent under the plan.

The Consummation Agent will also pay approximately $3.6 million to Pine Brook, which will constitute Pine Brook's initial operating capital.

Columbia Western's general unsecured creditors will receive approximately 99 percent of the total outstanding capital stock of Pine Brook, before the exercise of any warrants discussed below and subject to further adjustments as contemplated by the plan.

Former stockholders of Columbia Western will receive, in the aggregate, warrants to purchase approximately 7.5 percent of the total amount of Pine Brook common stock issued under the plan, subject to adjustment.

Gordian Group L.P., formerly the financial advisor to Columbia Western, will receive warrants to purchase, at nominal price, approximately 20 percent of the total amount of Pine Brook common stock issued under the plan, subject to adjustment.

The members of Pine Brook's board of directors are Stanford Springel and Michael McMahon. Pine Brook's president and CEO is Peter S. Kaufman who is also employed by Gordian Group L.P.

Springel, Columbia Western's president and CEO, remarked, "We are pleased that the reorganization has been effected and that a significant number of creditors have elected to reorganize through the formation of Pine Brook. This reorganization provides the creditors with a possibility of maximizing their recovery. It also provides the former stockholders of Columbia Western with a possibility for a recovery, which would not have been available if Columbia Western had simply been liquidated."

Kaufman, on behalf of Pine Brook, stated, "We are delighted to have the opportunity to serve Columbia Western's former creditors as shareholders of Pine Brook. We intend to work diligently to identify strategic acquisitions on behalf of Pine Brook; however, there can be no assurance that any appropriate acquisitions can be consummated.

"Therefore the Pine Brook securities -- which are currently unlisted -- remain a speculative investment."

Pine Brook currently expects to register its common stock under the Securities Exchange Act of 1934 and to commence SEC filings in 1996, after preparation of Pine Brook's 1995 audited financial statements.

At such time, Pine Brook also intends to have its common stock traded on the OTC Bulletin Board. Kaufman cautioned, however, that "no assurance can be given that an active trading market for the common stock will be established"

Pine Brook's initial capitalization is comprised of approximately $3.6 million of cash and 2,992,365 shares of common stock. Pine Brook has also acquired, pursuant to the plan, all of the outstanding stock of World Security Corp., an alarm security monitoring company formerly owned by Columbia Western, with annual revenues of approximately $1 million.

CONTACT: Deborah L. White, 212/486-3600