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EDISTO REPORTS STANDSTILL AGREEMENTS WITH CREDITORS AND STATUS OF PROPOSED FINANCIAL RESTRUCTURING

 EDISTO REPORTS STANDSTILL AGREEMENTS WITH CREDITORS AND
 STATUS OF PROPOSED FINANCIAL RESTRUCTURING
 DALLAS, Sept. 16 /PRNewswire/ -- Edisto Resources Corporation (AMEX: EDS) today announced that it has entered into certain agreements with its principal bank lender and certain large holders of the 13-7/8 percent senior notes due 1999 of Edisto's subsidiary NRM Energy Company, L.P. (AMEX: NRMC), in connection with Edisto's proposed comprehensive financial restructuring.
 The bank has agreed to waive certain defaults under the credit agreements of Edisto and a subsidiary. In addition, the large noteholders, who have informed Edisto that they collectively own more than 80 percent of the outstanding notes, have each agreed with Edisto that they will not take any action against Edisto or its affiliates as a result of NRM Energy's previously announced failure to make the interest payment on the notes due in August 1992. The agreements of the bank and each large noteholder are generally terminable upon five days' written notice to Edisto.
 Edisto is continuing to negotiate with the bank and the large noteholders regarding the terms of the restructuring. Edisto will promptly announce any substantive agreement resulting from such negotiations.
 On the basis of the negotiations to date and other factors, principally certain tax advantages and the ability to cause 100 percent of the notes to be exchanged for shares of Edisto common stock, Edisto currently anticipates that its restructuring will be accomplished through a prenegotiated bankruptcy filing. The filing will include Edisto and its domestic oil and gas subsidiaries, primarily NRM Energy and Edisto Exploration & Production Company. The filing will not include Edisto's gas marketing and transmission subsidiaries, ESCO Energy, Inc., Vesta Energy Company and Omega Pipeline Company, its international oil and gas operations or its 80 percent owned subsidiary Multiflex International, Inc. Edisto expects that the filing will be made as promptly as practicable after the conclusion of its negotiations with the bank and the large noteholders.
 Edisto also announced that, on Sept. 15, 1992, NRM Energy's failure to make the August 1992 interest payment of approximately $7.1 million on the notes became an event of default under the indenture governing the notes. The indenture provides that, upon an event of default, the trustee under the indenture or the holders of at least 25 percent of the outstanding notes have the right to accelerate the outstanding notes ($102.6 million plus accrued interest). The trustee and the noteholders may also pursue other remedies. The agreement with the large noteholders described above precludes them from accelerating the notes or pursuing any other remedies as long as it is in effect.
 Edisto Resources Corporation's consolidated activities include the production of oil and gas, the exploration and development of oil and gas reserves, and natural gas marketing and transportation.
 -0- 9/16/92
 /CONTACT: Gary L. Pittman, vice president - financial services of Edisto, 214-880-0243/
 (EDS) CO: Edisto Resources Corporation ST: Texas IN: OIL SU:


GK -- NY046 -- 0169 09/16/92 13:25 EDT
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Publication:PR Newswire
Date:Sep 16, 1992
Words:493
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