DOBBS FERRY, New York--April 17, 1995--href="chap11.fingermatrix.html">Fingermatrix Inc. href="(NASDAQ" target=_new>http://www.secapl.com/cgi-bin/edgarlink?FINXC">(NASDAQ
EBB:FINXC) emerged Monday from its 19 months in Chapter 11 bankruptcy
when the Trustee's Plan of Reorganization approved by the U.S. Bankruptcy
Court March 31 became effective.
Hal M. Hirsch, trustee in bankruptcy for the company since last August, said
the new management, headed by Tom Harding, president, will now assume full
responsibility for the company's operations, reporting to a new board of
directors which will be named shortly. Harding was brought aboard by Hirsch
last Dec. 5.
Under the recapitalization called for in the Plan, 3 million new common
shares with attendant A-Warrants will be distributed later this week. Fifty
percent of that equity will remain in the hands of present shareholders, while
the remainder will go to creditors, and investors and lenders who have
provided capital for the company's exit from Chapter 11 and for on-going
operations. The new shares will begin trading Tuesday, April 18 under
Old shares are null and void as of this date in accordance with the Plan of
Although the Plan involves approximately a one-for-12 reverse split in the
common stock, each new share carries with it 1 2/3 A-Warrants exercisable at
$1.00 per share for nine months. And, if the holder exercises the A-Warrants,
he will receive one B-Warrant for each two A-Warrants exercised, with the
B-Warrants exercisable at $2.00 over 21 months.
The Plan includes settlement of numerous claims made by Michael Schiller,
the former chairman and president, and members of his family who were related
to the company. Schiller and his son, Scott Schiller, formerly manager of
investor relations, were both discharged by the trustee last November.
Fingermatrix invented electronic fingerprinting technology and has a variety
of patents, including two covering the most advanced technology in the field,
Hirsch said. All the company's systems and devices are currently being
upgraded and refined, with the first advanced system slated for introduction
before the end of this month, he added.
Hirsch will shortly transfer his control of the company to the new board of
directors and management, and conclude his trusteeship except for certain
CONTACT: Official Fingermatrix Equity Holders Committee,
Gordon Molesworth, Chairman, 520/625-0035
WILMINGTON, Delaware, April 17, 1995 -- The
Columbia Gas System, Inc.
(NYSE:" target=_new>http://www.secapl.com/cgi-bin/edgarlink?CG">(NYSE:CG), and its
principal pipeline subsidiary, Columbia Gas Transmission
Corporation, today filed separate reorganization plans and disclosure
statements with the U.S. Bankruptcy Court for the District of Delaware.
The Parent Company plan proposes total distributions of approximately $3.6
billion to its creditors, which includes $2.3 billion in payment of the
Corporation's pre-petition debt and $1.1 billion of interest on that
Columbia Transmission's filing, which is supported financially by the Parent
Company, amends the plan it filed January 18, 1994, and proposes a total
distribution of approximately $3.9 billion to its creditors, including
approximately $2.2 billion to the Parent Company to resolve its secured and
unsecured debt claims; about $1.2 billion to resolve producer claims, and
about $300 million to resolve other third party claims.
The two companies, which have been operating as debtors-in- possession since
July 31, 1991, also asked the Bankruptcy Court to extend their exclusive
periods for filing plans to October 16, 1995, and soliciting acceptances to
December 18, 1995.
Distributions under the two plans are projected to take place prior to
December 31, 1995. Columbia Gas System Chairman and CEO John H. Croom said he
is optimistic that all necessary creditor, judicial, regulatory and
shareholder approvals for the plans can be obtained by that date. He also
said he expects the Corporation will emerge with investment-grade debt
Croom expressed confidence that the required majorities of creditors of each
company and the Parent Company's shareholders "will vote to approve the plans,
recognizing they represent balanced business solutions to the complex
The plans incorporate terms of an agreement in principle reached with
virtually all of Columbia Transmission's major producer creditors and a
settlement with its firm service customers.
The producer agreement, which is expected to be filed with the Bankruptcy
Court this week, reflects settlements and minimum distributions for claims
filed against Columbia Transmission by 18 major gas producers and a group of
Appalachian producers. These producers represent in excess of 80 percent of
the approximately $1.2 billion that Columbia Transmission's reorganization
plan proposes to distribute to producer creditors to resolve all producer
claims. Producers who reject the settlement offers will be free to litigate
their claims and will receive the same percentage payout on their claims, when
and if ultimately allowed, as received by the settling producers.
The producer agreement in principle requires that the Bankruptcy Court
approve the claim settlements by October 27, 1995 and that distributions under
the plan occur by June 28, 1996.
The plan also incorporates a major settlement between Columbia Transmission
and its firm service customers on numerous Order 636 transition cost, rate and
bankruptcy matters. The agreement also has wide support from state regulatory
commissions and consumer advocates. The settlement will be filed with the
Federal Energy Regulatory Commission today.
Parent Company Plan
The Parent Company plan proposes paying creditors the full amount of their
principal balances and accrued pre-petition interest, post- petition interest
and interest on overdue interest through distribution of:
The interest rate on the proposed new debt securities and the dividend rates
and other financial terms of the proposed new equity securities will be based
on market levels at the time of emergence.
Columbia Transmission Plan
The distribution of approximately $3.9 billion proposed in Columbia
Transmission's amended plan reflects a comprehensive settlement. This
settlement monetizes the enterprise value of Columbia Transmission and
provides for a Parent Company guarantee of all third party distributions
required under the plan, including the customer settlement, along with other
considerations for the retention of Columbia Transmission as a wholly owned
subsidiary of the Parent Company and the resolution of litigation over the
intercompany claims, producer and other creditor claims and various other
Confirmation of the plan would terminate pending litigation challenging the
status of secured and unsecured debt Columbia Transmission owes the Parent
Company and certain other intercompany transactions.
Columbia Transmission's amended plan proposes paying:
The precise level of the distributions to producers and their total amount
depends on the ultimate outcome of litigation with producers who decline the
settlements offered to them in Columbia Transmission's plan and establish
claims that are higher or lower that those projected in the plan.
Columbia Transmission's plan provides that until the total amount of
contested producer claims is established, five percent of the amount
distributable to all settling producer claimants will be withheld. This will
be used on a 50/50 basis with a like contribution by reorganized Columbia
Transmission to fund distributions on contested producer claims in excess of
those contemplated by the plan. Any recoveries after the holdback fund is
exhausted would be funded entirely by Columbia Transmission, backed by the
Parent Company's guarantee.
The next steps in the bankruptcy process are for the Bankruptcy Court to
approve the producer settlement and the customer settlement and the two
companies' disclosure statements. In addition, the Parent Company plan and
the Parent Company's financial participation in Columbia Transmission's plan
require Securities and Exchange Commission approval under the href="Public" target=_new>http://www.law.cornell.edu/uscode/15/ch2C.html">PublicUtility
Holding Company Act. FERC approval of the customer settlement is also
After obtaining these approvals, some of which can occur concurrently, the
Parent Company will send a copy of its reorganization plan and disclosure
statement and a report of the SEC to each of its creditors and shareholders
for voting purposes. Columbia Transmission will also send its reorganization
plan and disclosure statement to its creditors for voting purposes. The
companies believe that all regulatory, judicial, creditor and shareholder
approvals can be obtained in order that distributions can take place prior to
December 31, 1995.
The Columbia Gas System, Inc., is one of the nation's largest natural gas
systems. Subsidiary companies are engaged in the exploration, production,
purchase, storage, transmission and distribution of natural gas and other
energy operations such as cogeneration.
/CONTACT: H.W. Chaddock, 302-429-5261, or W.R. McLaughlin,
302-429-5443, or (financial), T.L. Hughes, 302-429-5363, or K.P. Murphy,
302-429-5471, all of Columbia Gas/