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OFFICIAL CREDITORS COMMITTEE OF FIRST CAPITAL HOLDINGS ANNOUNCES LEUCADIA NATIONAL CORP. AS REORGANIZATION PLAN PARTNER

 OFFICIAL CREDITORS COMMITTEE OF FIRST CAPITAL HOLDINGS ANNOUNCES
 LEUCADIA NATIONAL CORP. AS REORGANIZATION PLAN PARTNER
 New Reorganization and Rehabilitation Plans to Offer Greater Value
 to the Shareholder, Creditors and Policy Holders
 of First Capital Life Insurance
 LOS ANGELES, April 8 /PRNewswire/ -- The following is being issued on behalf of the Official Creditors Committee of First Capital Holdings Corp.:
 The U.S. Bankruptcy Court in Los Angeles today approved a Memorandum of Understanding filed by the Official Creditors Committee of First Capital Holdings Corp. and Leucadia National Corp. (NYSE: LUK). The memorandum identifies Leucadia as the primary investor in the pending rehabilitation plan for First Capital Life Insurance Co. (FCLIC, a subsidiary of First Capital Holdings), outlines the relationship between Leucadia and the committee, and states that if such plan is approved by the Conservation Court, it will represent an improvement on the current Shearson plan for both policy holders and creditors of First Capital Holdings. In today's decision, the court approved a "break-up" fee to Leucadia provided for in the Memorandum of Understanding. The committee and Leucadia expect an official bid for the rehabilitation of FCLIC to be submitted on or before April 10, 1992.
 "We are confident that the participation of Leucadia in the rehabilitation will result in a plan that provides increased benefits for both the policy holders of First Capital Life and the creditors of First Capital Holdings," said Hank Knowlton, co-chairman of the Official Creditors Committee.
 Leucadia is a publicly held corporation, listed on the New York Stock Exchange, with assets exceeding $4 billion. It is the parent company of Colonial Penn Life Insurance Co. and Charter National Life Insurance Co. Leucadia has "qualified" with the California insurance commissioner to bid for the rehabilitation of FCLIC and has been conducting its due diligence of FCLIC's assets and liabilities.
 According to Dean Ziehl of Pachulski, Stang & Ziehl, legal counsel to the Official Creditors Committee, "We are currently in the process of completing final preparation of the bid. As previously stated, the joint bid will offer greater value to First Capital Life's policy holders and the creditors of First Capital Holdings creditors and, at the same time, preserve valuable claims against Shearson for what we have charged has been gross mismanagement of First Capital Life and its parent companies since they assumed control of these entities."
 The Official Creditors Committee with claims in First Capital Holdings Corp. and its affiliates was appointed by the Office of the U.S. Trustee last May. The committee includes representatives of various creditor constituencies including the State Bank of South Australia and Mitsui Manufacturers Bank, in addition to other investors.
 -0- 4/8/92
 /CONTACT: Stan Rubenstein, 212-297-6108; or Sean Fitzgerald or Greg Romano of Berkhemer Kline Golin/Harris, 213-623-4200, for the Official Creditors Committee of First Capital Holdings/
 (LUK) CO: Official Creditors Committee of First Capital Holdings Corp.;
 Leukadia National Corp. ST: California IN: INS SU: RCN


DM-AL -- LA023 -- 6438 04/08/92 16:43 EDT
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Publication:PR Newswire
Date:Apr 8, 1992
Words:495
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