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FIRST CAPITAL CREDITORS COMMITTEE GRANTED RIGHT TO OFFER NEW REORGANIZATION PLAN

 FIRST CAPITAL CREDITORS COMMITTEE GRANTED RIGHT
 TO OFFER NEW REORGANIZATION PLAN
 Shearson Exclusivity Terminated by U.S. Bankruptcy Court
 LOS ANGELES, March 4 /PRNewswire/ -- The following is being issued on behalf of the Official Creditors Committee of First Capital Holdings Corp. (NYSE: FCH):
 The Official Creditors Committee of First Capital Holding Corp. has been granted authority to offer an alternative reorganization plan for the assets of First Capital Holding Corp., First Capital Life Insurance Co. and Fidelity Bankers Life Insurance Co.
 At a hearing today, U.S. Bankruptcy Court Judge Samuel L. Bufford terminated the exclusive right of the debtors, controlled by Shearson Lehman Brothers Holdings Inc. and supported by Citibank, to seek acceptance of their recently unveiled reorganization plan, thereby allowing the Official Creditors Committee to submit its own plan.
 Shearson and Citibank were charged with "self-serving negotiations" and collusion while ignoring the claims of all other involved creditors by attorneys for the Official Creditors Committee.
 "It appears that Judge Bufford agreed with our contention that the monopoly that Shearson and Citibank had on the plan process should be terminated and that the playing field should be leveled. The judge's ruling will now allow other bidders and creditors to have an opportunity to submit plans," said Dean Ziehl of Pachulski, Stang & Ziehl, legal counsel to the Official Creditors Committee.
 The Official Creditors Committee believes that a plan can be filed shortly which will be more beneficial to all policy holders and creditors, according to Hank Knowlton, co-chairman of the Official Creditors Committee. "We hope to present a proposal in the coming days that will best serve the interest of all creditors and policy holders, not just a select few," he said.
 The Official Creditors Committee also filed a lawsuit in U.S. Bankruptcy Court in Los Angeles on Feb. 26 against Shearson Lehman Brothers Holdings Inc. and a group of current and former officers and directors, charging them with breaches of fiduciary duty, waste of corporate assets and fraudulent transfer, among others.
 On May 10, 1991 California Insurance Commissioner John Garamendi issued an order prohibiting First Capital Life from writing any new policies or making payments to its parent company, First Capital Holding. The order also forced a moratorium on policy loans and cash surrenders. Four days later, the commissioner placed the insurer in conservatorship. As of Dec. 31, 1990, the company had 190,000 life insurance policy holders, 60,000 annuitants and assets of $4 billion.
 On Feb. 4, 1992, Shearson Lehman Brothers Holdings Inc. announced a plan allegedly designed to restore First Capital Life Insurance to financial health.
 The Official Creditors Committee with claims in First Capital Holding Corp. and its affiliates was appointed by the Office of the U.S. Trustee last May. The committee includes representatives of various creditor constituencies including Dean Whitter, the State Bank of South Australia and Mitsui Manufacturers Bank, in addition to other investors.
 -0- 3/4/92
 /CONTACT: Stanley Rubenstein of the Official Creditors Committee of First Capital, 212-297-6108; or Richard Kline or Gregory Romano of Berkermer Kline Golin/Harris, 213-623-4200, for the Official Creditors Committee of First Capital Holdings/
 (FCH) CO: Official Creditors Committee of First Capital Holdings Corp.; First
 Capital Holdings Corp. ST: California IN: FIN INS SU:


EH -- LA040 -- 5204 03/04/92 20:09 EST
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Date:Mar 4, 1992
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