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BANKRUPTCY COURT APPROVES PRELIMINARY AGREEMENTS FOR MAXXAM-LED INVESTMENT IN CONTINENTAL AIRLINES

 BANKRUPTCY COURT APPROVES PRELIMINARY AGREEMENTS
 FOR MAXXAM-LED INVESTMENT IN CONTINENTAL AIRLINES
 HOUSTON, July 22 /PRNewswire/ -- MAXXAM Inc. (AMEX: MXM) and Continental Airlines Inc. confirmed that the United States Bankruptcy Court for the District of Delaware today approved preliminary agreements calling for a $350 million MAXXAM-led cash investment in the airline.
 The proposed investment is to provide Continental with the financial resources necessary to enable it to emerge from Chapter 11 and assure its continued operation as an independent company. The proposed transaction will close following Continental's emergence from bankruptcy.
 Commenting on today's court approval, MAXXAM's Chairman of the Board and Chief Executive Officer, Charles E. Hurwitz, said, "This is an important early step in a process to help assure Continental's future as a viable competitor."
 Continental Vice Chairman and Chief Executive Officer, Robert R. Ferguson, III, said, "We look forward to the completion of this process and the benefits it lends to our restructuring and the future of our company."
 The agreements, which were signed by MAXAIR Holdings Inc., a subsidiary of MAXXAM, and Continental and its affiliated companies on July 9, are subject to a number of conditions. The next steps include negotiation and execution of definitive agreements, and preparation and filing of a disclosure statement and final plan of reorganization.
 MAXXAM is a Houston-based FORTUNE 200 company that operates in three industries: aluminum (through Kaiser Aluminum Corp., an 87.3 percent-owned, fully integrated aluminum producer); forest products (primarily through The Pacific Lumber Co., a wholly owned subsidiary); and real estate management and development (primarily through MAXXAM Property Co. and various wholly owned subsidiaries).
 Continental is the fifth largest U.S. airline, serving 135 domestic and 59 international destinations. It is the recognized industry leader infrequent flyer programs (OnePass), domestic business travel fares ("A" fares),and travel agency relations. Affiliated with the SystemOne computer reservations system, the airline and its subsidiaries employ 43,500 people who operate 431 aircraft on 2,066 daily jet and commuter flights. Continental is the most efficient major U.S. airline, producing approximately 20 percent more travel capacity per employee than its primary competitors.
 -0- 7/22/92
 /CONTACT: Robert W. Irelan, 510-271-3353 or Scott Lamb, 713-267-3826, both of MAXXAM, Continental Corp. Communications, 713-834-5080/
 (MXM) CO: Continental Airlines; MAXXAM ST: Texas IN: AIR MNG SU: BKT


RM -- SF022 -- 2201 07/22/92 19:27 EDT
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Publication:PR Newswire
Date:Jul 22, 1992
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