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CALIFORNIA SUPREME COURT UPHOLDS PRIORITY STATUS FOR MUNI-GICS; DENIES PETITION TO REVIEW LOWER COURT DECISION

 SAN FRANCISCO, Jan. 29 /PRNewswire/ -- The California Supreme Court today cleared the way for thousands of municipal bondholders who own bonds backed by Guaranteed Investment Contracts (GICs) issued by the defunct Executive Life Insurance Co., to resume receiving interest payments on their bonds. Denying the petition to review filed by California Insurance Commissioner John Garamendi and others, the State Supreme Court let stand two lower court decisions granting muni-GIC trustees policyholder priority status under the proposed rehabilitation plan.
 "At last this protracted litigation is behind us and bondholders in Texas and across the country can begin to recover their investments," said Gary L. Fontana, a partner in the law firm of Thelen, Marrin, Johnson & Bridges and lead attorney for Texas Commerce Bank -- El Paso, N.A., the indenture trustee which filed the original lawsuit challenging California Insurance Commissioner John Garamendi's denial of policyholder status for the GICs in May 1991.
 "The speed with which the court issued its denial further vindicates our position. We are glad to close the chapter on this litigation and turn our full attention to the defects in the commissioner's rehabilitation plan," Fontana said.
 Writ petitions challenging the terms of the rehabilitation plan are awaiting a decision from the California Court of Appeal, Second Appellate District in Los Angeles. The court is expected to rule by mid-March.
 Thelen, Marrin, Johnson & Bridges is a national law firm of 225 attorneys in eight offices -- San Francisco; Los Angeles; New York; Washington, D.C.; Houston; San Jose, Calif; Orange County, Calif. and Hong Kong.
 -0- 1/29/93
 /CONTACT: Gary Fontana, 415-392-6320, or Christine Franklin, 213-621-9800, both of Thelen, Marrin, Johnson & Bridges/


CO: Texas Commerce Bank; Thelen, Marrin, Johnson & Bridges ST: California, Texas IN: INS SU:

SG-TB -- SF008 -- 1019 01/29/93 19:14 EST
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Date:Jan 29, 1993
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