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Gas industry

Columbia Gas Companies Seek Bankruptcy Court Approval for Settlement Agreement with Producer Creditors

Strategic Insights

— 1 min read

The Columbia Gas System, Inc., and Columbia Gas Transmission Corporation, two companies operating under Chapter 11 of the U.S. Bankruptcy Code since July 31, 1991, have filed a settlement agreement with major producer creditors. This agreement, signed by over 80% of the largest producer creditors, represents more than 80% of the producer creditor claims filed against Columbia Transmission. The companies seek approval from the Bankruptcy Court in Delaware to implement the settlement, which would facilitate a significant step towards confirmation of their reorganization plans. The court has been requested to hold hearings on the settlement on June 15 and 16, 1995.

Key Takeaways:

  • The Columbia Gas System, Inc., and Columbia Gas Transmission Corporation have been operating under Chapter 11 since July 31, 1991.
  • The settlement agreement with producer creditors represents more than 80% of the producer creditor claims filed against Columbia Transmission.
  • The agreement is signed by virtually all of the largest producer creditors who filed claims against Columbia Transmission.
  • The court's approval of the settlement will allow both companies to take a significant step towards confirmation of their reorganization plans.
  • The settlement will provide a process whereby other non-settling producers can resolve their claims on the same basis as the settling producers.
  • The companies have asked the court to defer further proceedings in the previously established claims estimation process until after the court has ruled on approval of the producer settlement.

Statistics:

  • 80% of producer creditor claims filed against Columbia Transmission are represented by the settlement agreement.
  • 80% of the approximately $1.2 billion proposed for distribution to resolve producer claims will be allocated under the settlement agreement.
  • The two companies have been operating under Chapter 11 for approximately 3 years and 9 months as of April 27, 1995.

Sources:

  • WILMINGTON, Del., April 27 /PRNewswire/ -- Columbia Gas Transmission Corporation and The Columbia Gas System, Inc., (NYSE: CG)
  • /CONTACT: W.R. McLaughlin, 302-429-5443, or H.W. Chaddock, 302-429-5261, or (financial), T.L. Hughes, 302-429-5363, or K.P. Murphy, 302-429-5471, all of Columbia Gas/

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