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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) June 19, 1995
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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
June 15, and June 16, 1995, and are 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 and
Controller
Date: June 19, 1995
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Contact: E. Kelly Merritt - (304) 357-2283
FOR IMMEDIATE RELEASE June 15, 1995
FERC APPROVES COLUMBIA GAS TRANSMISSION CUSTOMER SETTLEMENT
Charleston, W. Va. -- The Federal Energy Regulatory Commission (FERC)
today approved a settlement among Columbia Gas Transmission Corp., the
principal pipeline subsidiary of The Columbia Gas System, Inc., (NYSE:CG) its
firm service customers, various state regulatory agencies and consumer
representatives that resolves numerous Order 636 transition costs, rate refund
and bankruptcy-related matters.
FERC approval of the settlement is a key component of Columbia
Transmission's Chapter 11 reorganization plan. Columbia Transmission filed the
settlement with the FERC on April 17, 1995, and incorporated it into the
amended plan of reorganization filed with the Bankruptcy Court in Delaware on
the same day.
Columbia Transmission Chairman James P. Holland said: "We are pleased
with the FERC's action. This settlement is a very important component of our
reorganization plan. This action by the FERC keeps us on track for emerging
from Chapter 11 by the end of 1995."
In discussing the customer settlement at today's commission meeting,
Chair Elizabeth Moler said: "I want to highlight this order for the simple
purpose of congratulating those involved on reaching this uncontested omnibus
settlement. It is an essential prerequisite to Columbia's being able to emerge
from bankruptcy. It has been a long and arduous and expensive ordeal. The
notion that they would be able to resolve over 100 commission proceedings and
40 pending court cases is, as my son would say, awesome."
Prior to the FERC decision, comments to the Commission were very
favorable. One set of comments, filed by a group of 57 local distribution
companies, consumer advocates and state public service commissions urged the
FERC to approve the plan without modification. "All parts of this stipulation
are inextricably intertwined -- it is an integrated whole," the group's filing
stated.
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The settlement agreement provides for refunds to customers by
Columbia Transmission of about $170 million. In addition, an estimated $200
million in costs will be collected by Columbia Transmission from customers
depending upon when the settlement is implemented. This settlement remains
subject to Bankruptcy Court approval in the context of Columbia Transmission's
amended plan of reorganization.
Columbia Gas Transmission Corp. and The Columbia Gas System, Inc.,
have been operating as debtors-in-possession under Chapter 11 of the U.S.
Bankruptcy Code since July 31, 1991.
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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 June 16, 1995
BANKRUPTCY COURT APPROVES SETTLEMENT AGREEMENT
BETWEEN COLUMBIA TRANSMISSION AND PRODUCER CREDITORS
WILMINGTON, DEL. -- The Columbia Gas System, Inc., (NYSE:CG) termed
today's U. S. Bankruptcy Court approval of a settlement agreement between its
principal pipeline subsidiary, Columbia Gas Transmission Corporation, and its
producer creditors a "significant step forward" in the companies' Chapter 11
proceedings.
The agreement approved by the court was signed by 17 of the largest
producer creditors and a major Appalachian producer group. Since the agreement
was filed, 199 additional producers have indicated they will support the terms
of the settlement. As a result, support for the plan now stands at about 87
percent of the value of claims filed by producers against Columbia
Transmission.
Columbia Chairman and CEO Oliver G. Richard III said he expects other
producer creditors of Columbia Transmission to support the settlement,
recognizing that it represents a balanced business solution to an extremely
complex proceeding. "I fully expect the 90 percent acceptance level that is a
condition of our reorganization plans will be obtained," Richard said.
Richard pointed out today's action by the Bankruptcy Court was the
second major positive development in Columbia's bankruptcy proceedings in as
many days, referring to the Federal Energy Regulatory Commission's approval on
Thursday of a comprehensive settlement between Columbia Transmission and its
customers and other parties that resolved more than 100 proceedings before the
FERC and some 40 court cases.
"Both of these rulings are significant steps forward in Columbia's
bankruptcy proceedings," Richard said. "In fact, I'll borrow the phrase FERC
Chair Elizabeth Moler used yesterday in commenting of the Commission's approval
of the customer settlement: "It's awesome."
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Richard said the prompt rulings of the settlements by the FERC and
the Bankruptcy Court should facilitate Columbia's ability to emerge from
Chapter 11 prior to the end of the year.
In approving the settlement, Bankruptcy Court Judge Helen Balick said
it was "a building block" toward a consensual plan of reorganization and was in
the "best interest" of the companies and both the settling and non-settling
producers.
The settlement approved by the court establishes allowable claims for
each of the supporting producers. The amended plan of reorganization filed by
Columbia Transmission provides that producers could receive up to 72.5 percent
or more of their allowed claims. The settlement also provides a process
whereby other non-settling producers can resolve their claims on the same basis
as settling producers.
Columbia Transmission's amended plan of reorganization, which has a
total distribution of $3.9 billion, provides for the payment of approximately
$1.2 billion to satisfy all producer claims.
The Columbia Gas System, Inc., is one of the nation's largest natural
gas holding companies. Subsidiary companies are engaged in the exploration
production, purchase, storage, transmission and distribution of natural gas and
other energy operations such as cogeneration. The Parent Company and Columbia
Transmission have been operating as debtors-in-possession under the Bankruptcy
Code since July 31, 1995.
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