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NO DEBT SERVICE TO BE PAID ON COLUMBIA GAS LESOP DEBENTURES

 NO DEBT SERVICE TO BE PAID ON COLUMBIA GAS LESOP DEBENTURES
 WILMINGTON, Del., May 29 /PRNewswire/ -- The Columbia Gas System, Inc. (NYSE: CG) announced today that the May 31, 1992, debt service payment on debentures issued under the Leveraged Employee Stock Ownership Plan (LESOP) portion of Columbia's Employees' Thrift Plan would not be made and that no further debt service payments are likely until the company emerges from bankruptcy.
 Under the terms of the company's guarantee of the debentures, the LESOP debentureholders will become creditors of the company, subordinated to holders of debentures and medium term notes issued by the company.
 The failure to make the LESOP debt service payments will not affect Columbia Gas employees or their benefits under the Employees' Thrift Plan.
 The previously announced termination of the LESOP is expected to be deferred at least until The Columbia Gas System, Inc. emerges from bankruptcy. The company has concluded that it is more equitable and may be economically preferable to pay all creditors at the same time in connection with consummation of its Plan of Reorganization. As presently envisioned, the company's plan would pay all creditors in full, including post-filing interest and interest on overdue interest.
 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- 5/29/92
 /CONTACT: H.W. Chaddock (media), 302-429-5261, or D.W. McFarland (analysts), 302-429-5363, or T.L. Hughes (analysts), 302-429-5471, or 302-429-5000, all of Columbia Gas/
 (CG) CO: The Columbia Gas System, Inc.; Columbia Gas Transmission Corp. ST: Delaware IN: OIL SU:


CC-LJ -- PH044 -- 5318 05/29/92 16:33 EDT
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Publication:PR Newswire
Date:May 29, 1992
Words:285
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