Printer Friendly

BANKRUPTCY COURT ISSUES PARTIAL SUMMARY JUDGMENT RELATED TO APPLICATION OF LETTER OF CREDIT PROCEEDS ON PALO VERDE ADVERSARY PROCEEDING

 EL PASO, Texas, Dec. 16 /PRNewswire/ -- El Paso Electric announced today that following a hearing held on Dec. 14, 1992, the United States Bankruptcy Court in Austin, Texas, issued a partial summary judgment in the adversary proceeding the company brought related to its rejection of leases of interests in Units 2 and 3 of the Palo Verde Nuclear Generating Station. The Bankruptcy Court granted a motion filed by defendants in the action and dismissed certain claims of the company related to the application of $288.4 million in proceeds on letters of credit that were drawn upon in December 1991 and January 1992 and denied EPE the relief that it had requested in connection with those claims. EPE had sought a ruling that the letter of credit proceeds should be applied as an offset against any damages resulting from its rejection of the Palo Verde leases.
 The Bankruptcy Court has not ruled upon the other issues presented in the adversary proceeding, including whether the Palo Verde leases are leases rather than financing arrangements and, if leases, whether they are leases of real or personal property and the extent of any damages that would result from their rejection. The company has maintained that the leases are real property leases, that as such the leases were rejected as a matter of law on Sept. 8, 1992 and that, pursuant to applicable bankruptcy law, any damages resulting from the rejection of the leases are limited.
 The company is evaluating the impact of the partial summary judgment on its Second Amended Plan of Reorganization, which was distributed to holders of interest on Dec. 8, 1992, together with the Disclosure Statement approved by the Bankruptcy Court, for solicitation of acceptances of the Plan.
 El Paso Electric Company, which filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code on Jan. 8, 1992, is an electric utility serving approximately 250,000 customers in El Paso, Texas, and an area of the Rio Grande Valley in West Texas and Southern New Mexico.
 -0- 12/16/92
 /CONTACT: Alan Lee Bunnell of El Paso Electric, 915-543-5823/
 (ELPA)


CO: El Paso Electric ST: Texas IN: UTI SU:

AH -- NY066 -- 7743 12/16/92 13:09 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 16, 1992
Words:370
Previous Article:BRANDON SYSTEMS CORPORATION LISTS ON THE AMERICAN STOCK EXCHANGE
Next Article:HOCKEY SUPERSTAR MARIO LEMIEUX GETS HIS OWN CANDY BAR
Topics:


Related Articles
EL PASO ELECTRIC ANNOUNCES DELAY ON CLOSING OF ITS FINANCIAL RESTRUCTURING
EPE LETTERS OF CREDIT DRAWN BY BENEFICIARIES; EPE CONTINUES TO ASSESS ALL ALTERNATIVES
EL PASO ELECTRIC ANNOUNCES INTERIM EXTENSION OF CREDIT FACILITIES AND OBLIGATIONS UNTIL JAN. 31, 1992
EL PASO ELECTRIC ANNOUNCES FILING FOR REORGANIZATION IN BANKRUPTCY
EL PASO ELECTRIC ANNOUNCES 1992 FIRST QUARTER FINANCIAL RESULTS
EL PASO ELECTRIC REQUESTS EXTENSIONS OF TIME TO FILE REORGANIZATION PLAN AND TO ASSUME OR REJECT PALO VERDE LEASES
EXTENSION OF PERIOD FOR EL PASO ELECTRIC TO SOLICIT ACCEPTANCES OF PLAN OF REORGANIZATION EXTENDED FROM 11/9/92 TO 12/23/92
EPE FILES REORGANIZATION PLAN WITH BANKRUPTCY COURT
BANKRUPTCY COURT RULES FOR CONTINUATION OF EPE'S EXCLUSIVITY PERIOD
SPS WITHDRAWS PROPOSAL TO PALO VERDE LEASE-DEBT HOLDERS

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters