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CONTINENTAL CREDITORS COMMITTEE FILES SUIT AGAINST FRANK LORENZO

 CONTINENTAL CREDITORS COMMITTEE FILES SUIT AGAINST FRANK LORENZO
 NEW YORK, Feb. 12 /PRNewswire/ -- The following was released today on behalf of the official Creditors Committee of Continental Airlines:
 The official Creditors Committee of Continental Airlines announced today that litigation is under way to recover up to $180 million in damages from Francisco A. ("Frank") Lorenzo, Robert D. Snedeker and Jet Capital Inc.
 The lawsuit arises from a series of transactions involving Scandinavian Airlines System ("SAS") under contracts dated Aug. 9, 1990, just four months before Continental entered bankruptcy protection, in which Lorenzo, Snedeker and Jet Capital received $41.6 million in cash. Lorenzo and Snedeker were directors of Continental at the time and controlled Jet Capital. The creditors' complaint alleges that the payments were received while Continental was insolvent, in violation of Lorenzo's and Snedeker's duties as directors of the corporation, and that Lorenzo and Snedeker also benefited from a preferential transfer which immediately preceded the SAS transaction. SAS is not a defendant.
 The creditors' litigation follows shortly after Continental filed a plan to emerge from bankruptcy protection last week.
 Under the proposed plan, which is supported by the Creditors Committee, holders of unsecured claims in excess of $3.4 billion will become the new owners of reorganized Continental. Continental also will restructure its secured debt, and any cash recovery in the Lorenzo litigation will be distributed to creditors according to the new plan.
 For further information, contact Robert J. Rosenberg at 212-906-1370 or James E. Brandt at 212-906-1278. Rosenberg and Brandt are partners at the New York office of Latham & Watkins, the law firm representing the Creditors Committee.
 -0- 2/12/92
 /CONTACT: Robert J. Rosenberg of Latham & Watkins, 212-906-1370, for Creditors Committee of Continental Airlines/ CO: Continental Airlines ST: New York IN: AIR SU: BCY


AL-KJ -- LA019 -- 9346 02/12/92 15:11 EST
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Publication:PR Newswire
Date:Feb 12, 1992
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