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FORM 8-K
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
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Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (date of earliest event Reported) July 21, 1994
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THE COLUMBIA GAS SYSTEM, INC.
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(Exact name of registrant as specified in its charter)
Delaware 1-1098 13--1594808
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(State of other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
20 Montchanin Road, Wilmington, Delaware 19807
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(Address of principal executive offices)
Registrant's telephone number, including area code (302) 429-5000
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Item 5. Other Events
Information contained in the News Releases dated
July 20, 1994, is incorporated herein by reference.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
The Columbia Gas System, Inc.
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(Registrant)
By /s/ R. E. Lowe
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R. E. Lowe
Vice President &
Controller
Date: July 21, 1994
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Contacts: Media - W. R. McLaughlin (302) 429-5443
H. W. Chaddock (302) 429-5261
Analysts - T. L. Hughes (302) 429-5363
K. P. Murphy (302) 429-5471
FOR IMMEDIATE RELEASE July 20, 1994
COLUMBIA GAS MAKING PROGRESS WITH BANKRUPTCY CREDITORS;
BUT "SIGNIFICANT FINANCIAL DISPARITIES" STILL EXIST
WILMINGTON, DEL. -- The Bankruptcy Court for the District of
Delaware was told today that some progress is being made in negotiations
seeking to resolve the Chapter 11 bankruptcy proceedings of Columbia Gas
Transmission Corporation, the principal pipeline subsidiary of The Columbia Gas
System, Inc. (NYSE:CG), but that "significant financial disparities" in the
positions of the various parties still exist.
In a progress report to the Bankruptcy Court, Attorney Lewis
Kruger said Columbia Transmission continues to meet with the official
committees representing the company's creditors and its customers in its effort
to resolve the several complex issues that must be settled in order to achieve
a consensual plan of reorganization. "Each of these issues involves distinct
legal and factual issues, and the resolution of all of them is necessary to the
formulation of a fully consensual plan of reorganization," he added.
The Columbia attorney said the scheduled September 12 trial in
U.S. District Court in Delaware on challenges to intercompany transactions by
Columbia Transmission may serve to accelerate these negotiations. He also
pointed out that efforts to establish allowable levels of the numerous and
diverse claims filed by producers may be expedited by rulings that are expected
from the Claims Mediator appointed by the Bankruptcy Court.
However, Kruger told the court that settlement discussions had
been further complicated recently by a decision by the Court of Appeals for the
District of Columbia. The ruling could result in Columbia Transmission having
to refund to its customers a "presently indeterminable portion of $162 million
in upstream pipeline charges that it paid and, for the most part, collected
from its customers pre-petition."
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He said the amount of the required refund could be materially
adverse to Columbia Transmission, and unless the matter can be resolved
promptly through negotiations, Columbia Transmission faces an additional
difficulty in formulating an acceptable plan of reorganization.
The Columbia Gas System, Inc., and Columbia Gas Transmission
have been operating as debtors in possession under Chapter 11 of the Bankruptcy
Code since July 31, 1991. In January of this year, Columbia Transmission filed
a reorganization plan with the court, but asked the court to defer required
proceedings on the plan in order to permit settlement discussions.
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Contacts: Media - W. R. McLaughlin (302) 429-5443
H. W. Chaddock (302) 429-5261
Analysts - T. L. Hughes (302) 429-5363
K. P. Murphy (302) 429-5471
FOR IMMEDIATE RELEASE July 20, 1994
COLUMBIA GAS SAYS EXXON MISCHARACTERIZED
BANKRUPTCY SETTLEMENT STATUS
WILMINGTON, DEL. -- The Columbia Gas System, Inc. (NYSE:CG),
said an Exxon attorney today substantially mischaracterized to the Bankruptcy
Court the efforts being made by Columbia Gas Transmission Corp., its principal
pipeline subsidiary, to negotiate a settlement in its bankruptcy proceedings.
Columbia said the status of settlement negotiations was
accurately summarized to the court by the counsel of Columbia Transmission's
Official Committee of Unsecured Creditors, of which Exxon is a member, and
Columbia's attorney. They both agreed progress is being made, although
substantial financial differences still exist.
Columbia Gas System Chairman John H. Croom said that, far from
being ambivalent, as suggested by Exxon's attorney, both Columbia Transmission
and the parent company have vigorously pursued settlement at every opportunity.
Croom said he was surprised at the difference in Exxon's
perception of the negotiations from that expressed by the other parties in a
settlement status report requested by the Court, but declined to speculate as
to what Exxon's objective might be in taking such a disparate position.
Croom dismissed as obvious the comments of Exxon's attorney
that the complex issues involving producer claims, if fully litigated, could
require years to resolve. "We are convinced, however, that the existence of
the claims estimation process established by the bankruptcy court, at
Columbia's instigation, to formulate standardized, generic guidelines for
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measuring producer claims has helped to advance discussions thus far," Croom
said. "We continue to urge Claims Mediator Charles Normandin to issue the
generic rulings as soon as possible since the company believes they will assist
in achieving a consensual plan. In the interim, Columbia will continue to
pursue a negotiated settlement."
As was pointed out by Columbia's counsel at the Bankruptcy
Court hearing, Columbia Transmission is desirous of finalizing agreements that
will resolve the bankruptcy proceedings as quickly as possible, but cannot
agree to settlements that submit to totally unjustified demands.
Contrary to statements by Exxon's counsel, Columbia
Transmission is unaware of any information pertinent to producer claims that
was requested by Columbia Transmission's Official Committee of Unsecured
Creditors that has not been provided in as timely a manner as possible. Any
additional requests that are forthcoming will also be expedited.
The Columbia Gas System, Inc., and Columbia Gas Transmission
have been operating as debtors in possession under Chapter 11 of the Bankruptcy
Code since July 31, 1991. In January of this year, Columbia Transmission filed
a reorganization plan with the court, but asked the court to defer required
proceedings on the plan in order to permit settlement discussions.
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