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EDISTO ANNOUNCES DECISION TO REDEEM PREFERRED STOCK FOR CASH AND DELAY OF REDEMPTION DATE

 EDISTO ANNOUNCES DECISION TO REDEEM PREFERRED STOCK
 FOR CASH AND DELAY OF REDEMPTION DATE
 DALLAS, April 30 /PRNewswire/ -- Edisto Resources Corporation (AMEX: EDS) today announced that its board of directors has determined that the 208,087 remaining outstanding shares of its $2.60 senior cumulative convertible preferred stock (AMEX: EDSpr) will be redeemed for cash, rather than wholly or partly for shares of Edisto common stock. Due to Edisto's current cash position and its pending debt exchange offer, however, the redemption will not take place on May 15, 1992, the scheduled redemption date.
 The redemption price is $20 per share, which may be paid, at Edisto's option, in cash, shares of common stock or any combination thereof. The board determined that payment in whole or in part in shares of common stock would not be in the best interests of Edisto or its stockholders.
 Although the board has determined that the preferred stock will be redeemed for cash, as a result of the liquidity problems that necessitated Edisto's previously announced proposed financial restructuring, Edisto (as distinct from its subsidiaries) does not have sufficient cash to pay the aggregate redemption price of approximately $4.2 million. Edisto's subsidiaries are severely restricted in their ability to provide funds to Edisto as a result of the terms of their debt instruments and, in the case of the exploration and production subsidiaries, industry conditions and their current financial condition. Consequently, Edisto is unable to redeem the preferred stock in full for cash on May 15, 1992. In addition, the board has determined that it is in the best interests of Edisto and its stockholders that Edisto retain its limited cash for use in its operations, rather than use any of its to effect a partial redemption of the preferred stock.
 The preferred stock will be redeemed in full for cash at the earliest practicable date after the board determines that Edisto has sufficient legally available cash (over the amount required for its operations) to make the redemption. Edisto cannot currently predict whether or when the redemption will occur. Pending the redemption, the preferred stock will remain outstanding with all of the rights and privileges it has now, including the right to receive, if, as and when declared by the board, quarterly dividends of $.65 per share, with unpaid dividends, if any, being cumulative. Edisto does not believe that the American Stock Exchange will delist the preferred stock because Edisto will not redeem it as scheduled; however, there an be no assurance that the Preferred Stock will not be delisted.
 Edisto Resources Corporation is an integrated energy company engaged in oil and gas exploration, development and production, and natural gas marketing and transmission.
 -0- 4/30/92
 /CONTACT: Gary L. Pittman, vice president-financial services of Edisto Resources 214-880-0243/
 (EDS) CO: Edisto Resources Corporation ST: Texas IN: OIL SU:


LR -- NY067 -- 4950 04/30/92 12:45 EDT
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Publication:PR Newswire
Date:Apr 30, 1992
Words:482
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