Columbia Gas System Announces Chapter 11 Reorganization Plan and Disclosure Statement

Strategic Insights -

Columbia Gas System, Inc. (NYSE: CG) has announced its Chapter 11 reorganization plan and disclosure statement, along with ballots for voting to accept or reject the plan, which will be mailed to creditors and equity security holders. Creditors of Columbia Gas Transmission Corp., the company's principal pipeline subsidiary, will also receive copies of their reorganization plan, disclosure statement, and voting materials. The required votes must be returned by October 13, and the Bankruptcy Court has scheduled confirmation hearings for both plans to begin on November 13.

Key Takeaways:

  • The Columbia Gas System, Inc. has submitted its Chapter 11 reorganization plan and disclosure statement, along with voting materials, to its creditors and equity security holders.
  • Creditors of Columbia Gas Transmission Corp., the company's principal pipeline subsidiary, will also receive their reorganization plan, disclosure statement, and voting materials.
  • The voting deadline is October 13, and the Bankruptcy Court has scheduled confirmation hearings for both plans to begin on November 13.
  • The Parent Company's reorganization plan proposes a total distribution of approximately $3.6 billion to its creditors, which includes $2.3 billion in payment of pre-petition debt.
  • The two companies have been operating as debtors-in-possession under Chapter 11 of the Bankruptcy Code since July 31, 1991.
  • The plans are supported by official bankruptcy committees and equity security holders in the bankruptcy proceedings.
  • The Parent Company's Official Committee of Unsecured Creditors have expressed basic support for the plan, although they have some remaining areas of disagreement.

Statistics:

  • The Parent Company's reorganization plan proposes a total distribution of approximately $3.6 billion to its creditors.
  • The distribution includes $2.3 billion in payment of pre-petition debt.
  • The two companies have been operating as debtors-in-possession under Chapter 11 of the Bankruptcy Code for 4 years, since July 31, 1991.
  • The voting deadline is October 13, with confirmation hearings scheduled to begin on November 13.

Sources:

  • PRNewswire, "Columbia Gas System Announces Chapter 11 Reorganization Plan and Disclosure Statement" (August 29, 1995)
  • Columbia Gas System press releases, available through PR Newswire's Company News On-Call fax service and on PRN's Web site.