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EDISTO ANNOUNCES DECISION NOT TO MAKE INTEREST PAYMENT ON 13-7/8 PERCENT SENIOR NOTES OF ITS NRM ENERGY SUBSIDIARY

 EDISTO ANNOUNCES DECISION NOT TO MAKE INTEREST PAYMENT ON 13-7/8
 PERCENT SENIOR NOTES OF ITS NRM ENERGY SUBSIDIARY
 DALLAS, Aug. 12 /PRNewswire/ -- Edisto Resources Corporation (AMEX: EDS) today announced that its wholly owned subsidiary NRM Energy Company, L.P. would not make the semi-annual interest payment of approximately $7.1 million due August 17, 1992 on its 13-7/8 percent senior notes due 1999. Approximately $102.6 million principal amount of such notes is currently outstanding.
 The board of directors of Edisto determined that NRM Energy should not pay the interest on the notes at this time in light of Edisto's current financial position and liquidity problems and the fact that Edisto's previously announced proposed comprehensive financial restructuring is still pending. The indenture governing the notes provides for a 30-day grace period after which such nonpayment of interest will become an event of default, as defined in the indenture. Edisto is currently negotiating with its principal bank lender regarding waivers of the financial covenant defaults and cross-defaults in its credit agreements resulting from the nonpayment of interest on the notes.
 Edisto is continuing its discussions with its principal bank lender and certain large noteholders regarding its proposed restructuring. As previously announced, Edisto may seek to implement the restructuring through a bankruptcy filing if it is otherwise unable to effectuate the restructuring on a timely basis or if its principal bank lender does not agree to continue to defer the principal payments under Edisto's $10 million credit agreement. Any such bankruptcy filing would include Edisto's oil and gas exploration and production subsidiaries (other than its international subsidiary), but would not include Edisto's gas transmission and marketing subsidiaries, including ESCO Energy, Inc., Omega Pipeline Company and Vesta Energy Company.
 Edisto Resources Corporation's consolidated activities include the production of oil and gas, the exploration and development of oil and gas reserves and natural gas marketing and transportation.
 -0- 8/12/92
 /CONTACT: Gary L. Pittman, vice president of financial services of Edisto Resource Corporation, 214-880-0243/
 (EDS) CO: Edisto Resources Corporation ST: Texas IN: OIL SU:


TM -- NY078 -- 6340 08/12/92 16:17 EDT
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Publication:PR Newswire
Date:Aug 12, 1992
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