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FEDERAL DISTRICT COURT REFUSES TO TRANSFER CREDITORS' COMMITTEE COMPLAINT AGAINST COLUMBIA GAS

 WILMINGTON, Del., Feb. 10 /PRNewswire/ -- U.S. District Court Judge Joseph Farnan has denied a motion brought by the Official Creditors' Committee of Columbia Gas Transmission Corp. seeking to transfer from U.S. Bankruptcy Court for the District of Delaware to U.S. Federal District Court in Delaware consideration of a complaint against The Columbia Gas System, Inc. (NYSE:CG) and one of its subsidiaries.
 The Creditors' Committee complaint seeks to recharacterize and equitably subordinate $1.7 billion in secured and unsecured debt the pipeline subsidiary owes its parent company, to recapture dividends and interest the pipeline company paid to the parent and to reverse a transfer of natural resource properties to Columbia Natural Resources, Inc., in 1990.
 Columbia opposed the Creditors' Committee motion and has a summary judgment motion pending before the bankruptcy court that seeks to dismiss portions of the complaint that would recharacterize and subordinate the debt and to recapture dividends and principal and interest payments.
 Columbia Chairman and CEO John H. Croom said Columbia is pleased that Judge Farnan has ruled on the Creditors' Committee's motion since it should allow the bankruptcy proceedings to move forward.
 The Columbia Gas System, Inc., and its principal pipeline subsidiary, Columbia Gas Transmission Corp., have been operating as debtors in possession under Chapter 11 of the Federal Bankruptcy Code since July 31, 1991.
 /delval/
 -0- 2/10/93
 /CONTACT: W.R. McLaughlin, 302-429-5443, or H.W. Chaddock, 302-429-5261, or (financial), D.W. McFarland, 302-429-5363, or T.L. Hughes, 302-429-5471, all of Columbia Gas/
 (CG)


CO: The Columbia Gas System, Inc.; Columbia Gas Transmission Corp. ST: Delaware IN: OIL SU:

CC -- PH009 -- 5127 02/10/93 11:50 EST
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Date:Feb 10, 1993
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