SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date earliest event reported) August 26, 1996
Commission Registrant, State of Incorporation, I.R.S.
File Number Address and Telephone Number Employer
Identification No.
1-11299 ENTERGY CORPORATION 72-1229752
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504) 529-5262
1-2703 ENTERGY GULF STATES, INC. 74-0662730
(a Texas corporation)
350 Pine Street
Beaumont, Texas 77701
Telephone (409) 838-6631
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Form 8-K Page 1
August 28, 1996
Item 5. Other Information
Entergy Corporation and Entergy Gulf States, Inc.
Court Approval Given To Settlement Agreement In Cajun
Bankruptcy
On August 26, 1996, Judge Frank J. Polozola of the U.S.
District Court for the Eastern District of Louisiana approved the
terms of a previously disclosed settlement agreement among
Entergy Gulf States, Inc., the Trustee in the Cajun Electric
Power Cooperative (Cajun) bankruptcy, and representatives of the
Rural Utilities Service (RUS).
The settlement gives the RUS several options for disposing
of Cajun's 30% undivided interest in the River Bend nuclear unit.
It also commits Cajun to fund its full share of the estimated
decommissioning obligation for the River Bend nuclear unit by
setting aside the sum of $125 million in a decommissioning trust
fund, regardless of the option the RUS chooses.
Under the settlement, RUS will have the option to seek a
buyer for Cajun's interest in the River Bend unit, take title to
Cajun's interest in its own name, or forego both of these options
and relinquish Cajun's interest at no cost to Entergy Gulf
States, Inc., which owns the other 70 % undivided interest in the
River Bend unit. Under each of these options, Cajun will be
released from its unpaid past, present and future liability for
River Bend costs and expenses.
The settlement further provides for Entergy Gulf States,
Inc. to recover all funds paid by it into the registry of the
court. These funds have been accumulating from payments made by
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Form 8-K Page 2
August 28, 1996
Entergy Gulf States, Inc. under a preliminary injunction entered
by the court, for its share of operations and maintenance
expenses associated with its 42% share of the Big Cajun 2, Unit
3, coal-fired generating facility, of which Cajun is the majority
owner and operator.
Other provisions of the settlement involve the mutual
release and forgiveness of claims among the parties. All
litigation between Cajun and Entergy Gulf States, Inc. will be
dismissed, and a small portion of Cajun's transmission assets
will be transferred to Entergy Gulf States, Inc. Entergy Gulf
States, Inc. also will release its claims against the RUS.
The settlement was announced on April 29, 1996, by
Bankruptcy Trustee Ralph R. Mabey, who submitted it to Judge
Polozola for approval in the Cajun bankruptcy proceeding. The
Judge's order directs the Trustee to take all steps necessary to
implement the settlement. The Unsecured Creditors Committee in
the Cajun bankruptcy proceeding objected to the settlement, but
was overruled by Judge Polozola. It is uncertain whether the
Unsecured Creditors Committee will appeal.
Entergy Gulf States, Inc., is a wholly-owned electric and
gas utility subsidiary of Entergy Corporation.
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Form 8-K Page 3
August 28, 1996
SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Entergy Corporation
By: /s/Louis E. Buck, Jr.
Louis E. Buck, Jr.
Vice President and Chief
Accounting Officer
Entergy Gulf States, Inc.
By: /s/Louis E. Buck, Jr.
Louis E. Buck, Jr.
Vice President and Chief
Accounting Officer
Dated: August 28, 1996
