Printer Friendly

BANKRUPTCY COURT SETS HEARING DATE ON EL PASO ELECTRIC'S THIRD AMENDED DISCLOSURE STATEMENT

 EL PASO, Texas, July 16 /PRNewswire/ -- El Paso Electric (EPE) (NASDAQ-NMS: ELPAQ) announced today that the United States Bankruptcy Court for the Western District of Texas in Austin has set Wednesday, Aug. 25, 1993, as a hearing date for the review and approval of El Paso Electric's proposed third amended disclosure statement to its third amended plan of reorganization, which EPE filed on May 5, 1993, and amended on May 18, 1993. As announced previously, the company's Third Amended Plan of Reorganization proposes a reorganization wherein EPE would emerge from Chapter 11 Bankruptcy protection as a wholly-owned subsidiary of Central and South West Corporation ("CSW"), a public utility holding company based in Dallas.
 In late May 1993, the Bankruptcy Court suspended the original hearing date of July 15, 1993, indicating that it would consider proceeding with confirmation of a plan of reorganization which had the general approval of creditors and other parties in interest in the bankruptcy case. To date, EPE's plan of reorganization has received public endorsement by three major creditor groups, including EPE's First and Second Mortgage Bondholders, the Official Unsecured Creditor's Committee, and the major banks that hold letters of credit on its pollution-control bonds. All three creditor groups have petitioned the Bankruptcy Court to maintain EPE's exclusive right to proceed with its reorganization plan and have urged that EPE's plan with Central and South West be confirmed in an expeditious manner.
 "In conjunction with CSW, we have worked very hard over the last several months to continue to gain consensual support from EPE's various creditor groups," said David H. Wiggs Jr., EPE chairman of the board, president and chief executive officer. "We have received good cooperation and assistance, and have made substantial progress in securing creditor support for our merger with CSW.
 "We strongly believe this merger with Central & South West is the best alternative in obtaining the greatest estate value for EPE and obtaining the highest possible recovery by all EPE constituencies, including shareholders. We now can continue to work toward acceptance of a plan that will allow the company to emerge from this Chapter 11 proceeding."
 Should the Bankruptcy Court approve EPE's proposed third amended disclosure statement, the company plans on requesting that it be allowed to begin the solicitation of approval for its plan through a ballot process beginning later this quarter, and that the Court establish a date for confirmation hearings on the company's proposed reorganization plan.
 El Paso Electric Company, which filed a voluntary petition under Chapter 11 of the United States Bankruptcy Code on Jan. 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, 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, 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- 7/16/93
 /CONTACT: Alan Lee Bunnell, corporate spokesperson, 915-543-5824, or John Droubay, treasurer, (analysts) 915-543-5710; or Office of the Secretary, 1-800-592-1634 or 1-800-351-1621, (stockbrokers and shareholders), all of El Paso Electric/
 (ELPA)


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

WB -- NY052 -- 2638 07/16/93 16:34 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jul 16, 1993
Words:567
Previous Article:LITTLE CAESARS LOVE KITCHEN TO FEED 8,000 DES MOINES FLOOD VICTIMS
Next Article:EPA PROPOSES REDESIGNATION OF ONONDAGA COUNTY AS A CARBON MONOXIDE ATTAINMENT AREA
Topics:


Related Articles
JURY FINDS EPE NOT GUILTY OF CRIMINAL CHARGES
EPE ANNOUNCES DISMISSAL OF COUNTERCLAIMS BY RECEIVER IN CONNECTION WITH FIRST SERVICE LIFE LITIGATION
BANKRUPTCY COURT APPROVES EPE'S SECOND AMENDED DISCLOSURE STATEMENT AND SETS CONFIRMATION HEARING DATE
BANKRUPTCY COURT RULES FOR CONTINUATION OF EPE'S EXCLUSIVITY PERIOD
FEDERAL BANKRUPTCY COURT APPROVES CRITICAL MEASURE FOR PLAN TO REORGANIZE EL PASO ELECTRIC COMPANY
BANKRUPTCY COURT APPROVES EPE'S THIRD AMENDED DISCLOSURE STATEMENT; SETS DATES FOR BALLOTING AND CONFIRMATION HEARINGS
BANKRUPTCY COURT HEARING POSTPONED; EPE/PUCT ENTER INTO STIPULATED AGREEMENT
CENTRAL AND SOUTH WEST CORPORATION SUES EL PASO ELECTRIC COMPANY FOR MERGER TERMINATION FEE
Central and South West Corporation and El Paso Electric Company File Settlement of Litigation Related to Terminated Merger Agreement
El Paso Electric Company and Central and South West Corporation Reach Settlement

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