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BANKRUPTCY COURT APPROVES EPE'S THIRD AMENDED DISCLOSURE STATEMENT; SETS DATES FOR BALLOTING AND CONFIRMATION HEARINGS

 EL PASO, Texas, Aug. 27 /PRNewswire/ -- Central and South West Corporation (NYSE: CSR) and El Paso Electric (NASDAQ: ELPAQ) today said the U.S. Bankruptcy Court for the Western District of Texas in Austin took a significant step toward enabling a merger of the two companies by approving a disclosure statement for El Paso Electric's third amended plan of reorganization, which will enable El Paso Electric to emerge from bankruptcy as a subsidiary of Central and South West.
 Federal Bankruptcy Judge Frank R. Monroe also set a December 6 hearing that would lead to confirmation of the reorganization plan.
 The judge set September 1 as the record date to determine the creditors that can vote on the plan confirmation. El Paso Electric can begin soliciting its creditors on or before September 21. The solicitation period will end November 15, with all ballots and any objections to the plan due that day. The bankruptcy court will hold a pretrial hearing on November 19 to consider administrative matters before the December 6 confirmation hearing.
 "The court's approval of the disclosure statement and the schedule for balloting on the plan are crucial steps in removing El Paso Electric from bankruptcy and making it a Central and South West subsidiary," said E.R. Brooks, chairman, president and chief executive officer of Central and South West.
 "We are fully confident that our merger with El Paso Electric will be successful," Brooks said. "Our intent has been to reach an agreement that is fair and equitable for all the parties involved -- balancing the interests of El Paso Electric's creditors, customers, investors and employees with the interests of Central and South West. We remain steadfastly committed to reaching that goal.
 Central and South West and El Paso Electric announced the plan of reorganization now before the court on May 4. El Paso Electric had filed a voluntary petition for protection under Chapter 11 of the federal bankruptcy code on January 8, 1992.
 El Paso Electric Company, which filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code on January 8, 1992, and announced on May 4, 1993, the approval by its board of directors of a merger agreement with Central and South West Corporation based in Dallas, Texas, as its plan to emerge from Chapter 11 (which plan and merger are subject to Bankruptcy Court and regulatory approvals), is an electric utility serving approximately 255,000 customers in El Paso, Texas, and an area of the Rio Grande Valley in West Texas and Southern New Mexico, and to wholesale customers located in such diverse locations as Southern California and Mexico.
 -0- 8/27/93
 /CONTACT: Alan Lee Bunnell, (media) corporate spokesperson, 915-543-5823, John Droubay, (Analysts) treasurer, 915-543-5710, or Office of the Secretary, (Stockbrokers and Shareholders), 800-592-1634 or 800-351-1621, all of El Paso Electric Company/
 (CSR ELPAQ)


CO: Central and South West Corporation ST: Texas IN: OIL SU: BCY

TM -- NY069 -- 6803 08/27/93 18:10 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
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