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EDISTO RESOURCES ANNOUNCES RESTRUCTURING INCLUDING EXCHANGE OFFER FOR 13-7/8 PERCENT SENIOR NOTES DUE 1999 OF NRM ENERGY

 EDISTO RESOURCES ANNOUNCES RESTRUCTURING INCLUDING EXCHANGE OFFER
 FOR 13-7/8 PERCENT SENIOR NOTES DUE 1999 OF NRM ENERGY
 DALLAS, Feb. 7 /PRNewswire/ -- Edisto Resources Corporation (AMEX: EDS) announced that its board of directors has approved a restructuring of the company that consists of the following components:
 (i) -- Edisto's offer to exchange 318 shares of Edisto's common stock for each $1,000 principal amount of the currently outstanding $102.6 million 13-7/8 percent senior notes due 1999 of its wholly owned subsidiary, NRM Energy Company, L.P.;
 (ii) -- the amendment of the indenture governing the notes to delete certain restrictive covenants from the indenture;
 (iii) -- the consolidation of Edisto's oil and gas exploration and production subsidiaries, including NRM Energy and Edisto Exploration & Production Company, into a newly formed wholly owned subsidiary;
 (iv) -- the amendment of the bank credit agreements of Edisto and Edisto Exploration & Production; and
 (v) -- the amendment of Edisto's Certificate of Incorporation to increase Edisto's authorized common stock from 50 to 75 million shares.
 Edisto's obligations to consummate the restructuring are subject to the fulfillment or waiver of the following conditions, among others: (i) at least 80 percent of the aggregate principal amount of the notes shall have been validly tendered and not withdrawn prior to the expiration date of the exchange offer and the holders of a majority in principal amount of the notes shall have consented to the proposed Indenture amendments; (ii) Edisto's stockholders shall have approved the charter amendment; and (iii) the required consents of Edisto's bank lender shall have been received.
 If 80 percent of the principal amount of the notes is validly tendered and accepted for exchange, holders of such notes will receive approximately 55 percent of Edisto's common stock outstanding immediately after the consummation of the exchange offer (approximately 60 percent of the outstanding common stock if 100 percent of the principal amount of the Notes is validly tendered and accepted for exchange). Edisto's registration statement relating to the proposed exchange offer was filed today with the Securities and Exchange Commission. Merrill Lynch & Co. has been retained to act as dealer manager for, as well as Edisto's financial advisor in connection with, the restructuring.
 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 transportation and marketing.
 -0- 2/7/92
 CONTACT: Gary L. Pittman, vice president-financial services, or Thomas W. Pickett, vice president and treasurer of Edisto Resources, 214-880-0243/
 (EDS) CO: Edisto Resources Corporation ST: Texas IN: OIL SU: RCN


TS -- NY027 -- 7681 02/07/92 10:32 EST
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Publication:PR Newswire
Date:Feb 7, 1992
Words:432
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