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FEDERAL BANKRUPTCY COURT APPROVES CRITICAL MEASURE FOR PLAN TO REORGANIZE EL PASO ELECTRIC COMPANY

 DALLAS, Aug. 27 /PRNewswire/ -- Central and South West Corporation (NYSE: CSR) and El Paso Electric Company (NASDAQ: ELPAQ) today said the U.S. Bankruptcy Court for the Western District of Texas in Austin took a significant step toward enabling a merger of the two companies by approving a disclosure statement for El Paso Electric's third amended plan of reorganization, which will enable El Paso Electric to emerge from bankruptcy as a subsidiary of Central and South West.
 Federal Bankruptcy Judge Frank R. Monroe also set a December 6 hearing that would lead to confirmation of the reorganization plan. The judge set September 1 as the record date to determine the creditors that can vote on the plan confirmation. El Paso Electric can begin soliciting its creditors on or before September 21. The solicitation period will end November 15, with all ballots and any objections to the plan due that day. The bankruptcy court will hold a pretrial hearing on November 19 to consider administrative matters before the December 6 confirmation hearing.
 "The court's approval of the disclosure statement and the schedule for balloting on the plan are crucial steps in removing El Paso Electric from bankruptcy and making it a Central and South West subsidiary," said E.R. Brooks, chairman, president and chief executive officer of Central and South West.
 "We are fully confident that our merger with El Paso Electric will be successful," Brooks said. "Our intent has been to reach an agreement that is fair and equitable for all the parties involved--balancing the interests of El Paso Electric's creditors, customers, investors and employees with the interests of Central and South West. We remain steadfastly committed to reaching that goal."
 Central and South West and El Paso Electric announced the plan of reorganization now before the court on May 4. El Paso Electric had filed a voluntary petition for protection under Chapter 11 of the federal bankruptcy code on Jan. 8, 1992.
 Central and South West Corporation is a public utility holding company based in Dallas. It owns Central Power and Light Company, Public Service Company of Oklahoma, Southwestern Electric Power Company and West Texas Utilities Company. These four subsidiaries provide electric utility service to 1.6 million customers in Texas, Oklahoma, Louisiana and Arkansas.
 Central and South West also owns Transok, Inc., an Oklahoma intrastate natural gas pipeline company, and four other subsidiaries.
 -0- 8/27/93
 /CONTACT: Gerald R. Hunter, manager of external communications of Central and South West, 214-777-1165/
 (CSR ELPAQ)


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

TM -- NY062 -- 6772 08/27/93 17:07 EDT
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Publication:PR Newswire
Date:Aug 27, 1993
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