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EL PASO ELECTRIC PLAN OF REORGANIZATION WINS OVERWHELMING APPROVAL FROM ALL CREDITOR CLASSES

 DALLAS, Nov. 16 /PRNewswire/ -- El Paso Electric Company (NASDAQ-NMS: ELPAQ) and Central and South West Corporation (NYSE: CSR) said today that preliminary returns of ballots in the solicitation process indicate overwhelming approval of El Paso Electric's Modified Third Amended Plan of Reorganization by every voting class of creditors and shareholders.
 The plan proposes a reorganization in which El Paso Electric will become a wholly owned subsidiary of Central and South West, a public utility holding company based in Dallas. Voting on the plan by creditors, shareholders and other parties-in-interest ended at 5 p.m. CST Nov. 15.
 "We are pleased with the strong show of support by creditors and shareholders for our proposed merger," said David H. Wiggs Jr., chairman of the board, president and chief executive officer of El Paso Electric Company. "This proposal not only provides a fair and equitable solution, but also will enable El Paso Electric to emerge from bankruptcy as a much stronger company."
 "We are fully confident, based on the solicitation results, that the bankruptcy court will confirm the plan of reorganization," said E.R. Brooks, chairman, president and chief executive officer of Central and South West Corporation. "We then will be able to focus, along with El Paso Electric, on obtaining the regulatory approvals required for the merger to occur and the plan to become effective," Brooks said.
 The U.S. Bankruptcy Court for the Western District of Texas in Austin has scheduled a pretrial hearing on Nov. 19 to consider administrative matters and has scheduled the confirmation hearing on the reorganization plan to begin Dec. 6.
 El Paso Electric filed a voluntary petition under Chapter 11 of the federal bankruptcy code on Jan. 8, 1992. On May 4, 1993, the utility announced the approval by its board of directors of a merger agreement with Central and South West Corporation as its plan to emerge from Chapter 11. The plan and merger are subject to approval by the bankruptcy court and various regulatory agencies.
 Central and South West Corporation is a public utility holding company that owns four electric utility companies. These four companies serve 1.6 million customers in Texas, Oklahoma, Louisiana and Arkansas. Central and South West also owns an intrastate natural-gas pipeline company and four other subsidiaries.
 El Paso Electric Company is an electric utility serving approximately 258,000 customers in El Paso, Texas, and an area of the Rio Grande Valley in West Texas and southern New Mexico as well as wholesale customers located in Southern California and Mexico.
 -0- 11/16/93
 /CONTACT: Gerald R. Hunter, manager of external communications, Central and South West Services, Inc., 214-777-1165/
 (ELPAQ CSR)


CO: El Paso Electric Company; Central and South West Corporation ST: Texas IN: UTI SU: TNM

TW -- NY112 -- 5168 11/16/93 17:33 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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