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TRANSCO CLOSES FINAL AGREEMENT RESOLVING LITIGATION, ACQUIRES CORPUS CHRISTI ASSETS

 HOUSTON, Oct. 21, /PRNewswire/ -- Transco Energy Company and Corpus Christi Gas Gathering, Inc., and certain affiliated companies, have closed the previously announced agreement under which Transco has acquired, through an exchange of stock, Corpus' interest in the jointly owned gas gathering and intrastate pipeline assets, terminated the existing business relationships and leased certain of the assets back to Corpus. Both companies have dropped their pending lawsuits.
 To acquire Corpus' interest in the assets and resolve the disputes between the parties, Transco paid Corpus $5.5 million in cash, including interest from September 1, 1993, through October 18, 1993; issued one million shares of Transco common stock; and will pay an additional $4 million on April 1, 1994. In connection with the agreement, Transco will record a third quarter charge of approximately $50 million pre-tax.
 The case involved partnership agreements under which certain Transco subsidiaries loaned amounts to Corpus to facilitate their participation and investment in certain gas gathering lines owned jointly by Transco and Corpus. The original suit, filed by Corpus in April 1992, did nt? specify monetary damages but alleged that Transco had breached its fiduciary duties. In an amended petition, filed in January 1993, Corpus added allegations of failure to share business opportunities, fraud and damages of $890 million in usury claims associated with loans totalling $46 million. Transco then filed an answer denying these claims, and filed a counterclaim against Corpus alleging actual and punitive damages in excess of $250 million.
 Transco Energy Company (NYSE:E) trr?ts natural gas through its interstate pipeline systems to markets in the eastern and midwestern United States and arranges for the transportation and sale of natural gas throughout the United States. Transco also maintains modest positions in other energy-related businesses.
 -0- 10/21/93
 /CONTACT: (Media Inquiries) KatheriK?. Putnam, 73?9-2455 or (Analyst Inquiries) R. Dean Ayers, 713-439-2593, both of Transco Energy Company/


CO: Transco Energy Company; Corpus Christi Gas Gathering, Inc. ST: Texas IN: OIL SU:

DH -- NY099 -- 5391 10/21/93 15:39 EDT
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Publication:PR Newswire
Date:Oct 21, 1993
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