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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) October 18, 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 a News Releases dated October 16 and
October 18, 1995, is incorporated herein by reference.
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SIGNATURES
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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Vice President &
Controller
Date: October 18, 1995
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Contacts: Media - W. R. McLaughlin (302) 429-5443
H. W. Chaddock (302) 429-5261
Analysts - K. P. Murphy (302) 429-5471
FOR IMMEDIATE RELEASE October 16, 1995
FEDERAL DISTRICT COURT APPROVES SETTLEMENT
OF CLASS ACTION LAWSUITS FILED BY COLUMBIA GAS SECURITY HOLDERS
Wilmington, Del. -- The Columbia Gas System, Inc., (NYSE:CG) reported
that U.S. District Court Judge Joseph Farnan Jr. today ruled that a $36.5
million settlement resolving class action lawsuits alleging securities laws
violations is fair and reasonable. He will issue an order dismissing the
litigation.
The lawsuits were filed against the Corporation, its independent public
accountants, the underwriters for the Corporation's 1990 common stock offering,
and certain officers and directors of the Corporation and Columbia Gas
Transmission Corporation by various security holders on behalf of a purported
class of all such security holders.
Judge Farnan also approved plaintiff counsel fees and expenses
totaling $12.26 million, which will be deducted from the $36.5 million
settlement amount.
Columbia's portion of the $36.5 million settlement is approximately
$16.5 million with the remainder shared among the insurance carrier for the
directors and officer defendants and the other defendants to the litigation.
The Corporation's contribution to the settlement fund is subject to the
approval of U.S. Bankruptcy Court for the District of Delaware as part of the
Corporation's reorganization plan. Payments to security holders will be made
after Columbia emerges from Chapter 11.
The Columia 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. Confirmation hearings on filed plans of reorganization
are scheduled for November, and the companies anticipate emergence from Chapter
11 protection prior to the end of this year.
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Contacts: Media - H. W. Chaddock (302) 429-5261
W. R. McLaughlin (302) 429-5443
Analysts - T. L. Hughes (302) 429-5363
K. P. Murphy (302) 429-5471
FOR IMMEDIATE RELEASE October 18, 1995
PRELIMINARY TALLY INDICATES COLUMBIA GAS' CREDITORS
AND SHAREHOLDERS ACCEPT CHAPTER 11 REORGANIZATION PLANS;
COMPANY RECEIVES FAVORABLE IRS RULING
WILMINGTON, DEL. -- The Columbia Gas System, Inc., (NYSE:CG) today
announced two favorable developments in its Chapter 11 bankruptcy proceedings.
Columbia said that preliminary results compiled by its balloting agent
indicate that the separate Chapter 11 reorganization plans filed by the
Corporation and by Columbia Gas Transmission Corp., its principal pipeline
subsidiary, have been accepted by the necessary majorities of each company's
creditors and the Corporation's shareholders. Balloting on the plans was
concluded Friday, October 13.
The Corporation also announced that the Internal Revenue Service has
issued a ruling that payments Columbia Gas Transmission will make to producers
under its reorganization plan are deductible in the year in which the payments
are made. The issuance of the IRS ruling was a condition of both the
Corporation's and Columbia Transmission's reorganization plans.
Columbia System Chairman and CEO Oliver G. Richard III said he was
"elated with the results of the balloting and the favorable ruling by the IRS,
which eliminate two major hurdles in our bankruptcy proceedings. We are
increasingly optimistic that our plans of reorganization will be confirmed and
we will be able to emerge from Chapter 11 before the end of the year."
Richard said final results of the balloting will be available by
November 13, 1995, the scheduled date for the commencement of the confirmation
hearings on both plans.
The two companies have been operating as debtors-in-possession under
the U.S. Bankruptcy Code since July 31, 1991.
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