MIAMI, Florida--May 1, 1995--William A. Brandt, Jr., bankruptcy
trustee for the Chapter 7 estate of Southeast
Banking Corporation, issued the
following statement in response to the dismissal of his lawsuit against First
Union National Bank of Florida and its parent, First Union Corporation:
"Since the commencement of this lawsuit, First Union has asserted that the
facts we alleged failed to state a claim for relief against it. In granting
the motion to dismiss, the Court did not take issue with whether the facts
alleged would entitle us to recover against First Union, but held that the
claims should be pursued by the FDIC as Receiver for Southeast Bank, N.A.,
rather than by me as Trustee for its holding company, Southeast Banking
"Having reviewed the decision, I have authorized my counsel immediately to
pursue at least two avenues to ensure that these meritorious claims are
prosecuted for the ultimate benefit of the Southeast creditors, bondholders
and shareholders. The first is to bring maximum pressure to bear on the FDIC
to take up the causes of action we have identified against First Union. The
second is to seek review of the Court's decision, with which we respectfully
disagree, in order to vindicate our position that as Trustee I have the legal
authority to pursue these claims.
"We intend to pursue both of these options aggressively."
CONTACT: Rubin Barney & Birger Inc., Coral Gables, Fla.
Bruce S. Rubin, 305-448-7450
ARDMORE, Oklahoma--May 1, 1995-- Noble Affiliates, Inc. (NYSE: NBL)
announced today that its wholly owned subsidiary, Samedan Oil Corporation, has
entered into an agreement to settle its bankruptcy claim against Columbia
Corporation, a subsidiary of Columbia Gas
System, Inc. (NYSE:
CG). Columbia Transmission and its parent company filed for protection from
creditors under Chapter 11 of the United States Bankruptcy Code on July 31,
1991. Shortly after the filing of its Chapter 11 petition, Columbia
Transmission, pursuant to the provisions of the Bankruptcy Code, rejected a
number of its long- term gas purchase contracts with producers, including a
long-term gas purchase contract with Samedan.
Samedan has become a party to a comprehensive producer settlement agreement
entered into with Columbia Transmission and Columbia Gas System, Inc. in
connection with their plans of reorganization filed in the Bankruptcy Court on
April 17, 1995. The producer settlement, if approved, would provide Samedan
with a right to receive a distribution, upon confirmation of a Columbia
Transmission plan of reorganization, in the amount of $48,925,000, which
amount would be based on an agreed claim against Columbia Transmission of
$71,034,483. In addition, the proposed settlement would give Samedan a
contingent right to receive approximately $2,575,000 upon the resolution of
certain other contested producer claims.
The producer settlement to which Samedan is now a party is subject to
various conditions, including approval by the Bankruptcy Court and
confirmation of plans of reorganization in the Columbia bankruptcy cases. The
confirmations of the plans of reorganization are subject to approval by, among
others, various classes of creditors, the Bankruptcy Court, the Securities and
Exchange Commission and the Federal Energy Regulatory Commission.
Because of both the contingent nature of the Columbia Transmission producer
settlement agreement and the uncertain timing of any receipt by Samedan of its
distribution, no accounting accrual of the revenues recoverable in respect of
Samedan's claim against Columbia Transmission will be made at this time.
Noble Affiliates, Inc. is an independent energy company with exploration and
production operations throughout major basins in the United States, including
the Gulf of Mexico, as well as international operations primarily in Canada,
Tunisia and Equatorial Guinea. Its common stock is listed on the NYSE under
the symbol "NBL."
CONTACT: Bill Dickson of Noble Affiliates, 405-223-4110
TEMPE, Arizona--May 1, 1995--UDC Homes, Inc.
announced today agreements in principle with the holders of more
than 66.67% of its
senior unsecured notes (aggregate principal amount $168 million) and all the
of the company s convertible subordinated notes (aggregate principle amount
$20.4 million) on the financial terms of a restructuring of its current
capitalization. The agreements in principle contemplate an $80 million cash
equity investment in UDC. In this regard, Aldrich, Eastman & Waltch (AEW), a
Boston based real estate investment firm, entered into a nonbinding letter of
intent with UDC confirming AEW s interest in investing $80 million in cash in
the restructured company.
Under the proposed restructuring plan, AEW would receive 70.8% of the
restructured company s common stock, holders of the company s senior unsecured
notes (including the company s 11.75% senior unsecured notes) would receive
$50 million in cash, $70 million principal amount in new unsecured senior
notes and 21.7% of the restructured company's common stock, and holders of the
company s convertible subordinated notes would receive 7.5% of the
restructured company s common stock. Holders of the company s outstanding
classes of preferred stock and common stock would not receive any
consideration and their shares would be canceled.
The restructuring plan is intended to permit the company to continue normal
business operations and honor fully all obligations to homeowners,
subcontractors and other trade creditors on a current and ongoing basis in
order to maximize the overall enterprise value of the company.
The company said it had received indications of support for the proposed
restructuring plan from most of its major secured lenders who have
preliminarily agreed to continue to provide financing for the company and to
extend previously announced waivers and forbearance agreements. In light of
the restructuring plan, the company said it will not make the $6.8 million
interest payment due today on its 11.75% senior unsecured notes.
It is anticipated that the proposed restructuring will be accomplished by
means of a "pre-arranged" bankruptcy filing. In a pre- arranged filing, plan
approval and confirmation by the bankruptcy court are expected to be expedited
because of up-front creditor support for the plan.
"The restructuring plan will enable the company to maximize the value of the
UDC enterprise as well as benefit creditors, homeowners, subcontractors and
employees," said Richard C. Kraemer, UDC Homes president and chief executive
The company also announced that three directors on UDC s board, James E.
Daverman, Jeffery C. Garvey, and Avy H. Stein, resigned from the UDC board on
April 26, 1995.
In conjunction with its restructuring plan, the company said in the future
it will focus its operations on its core homebuilding operations in Arizona
and California. The company will begin marketing assets not essential to this
business strategy, which primarily include the company's operations in
Charlotte, Atlanta and Florida. The company expects to write-off
approximately $60 million reflecting its present estimate of the loss to be
incurred in connection with the sale of these assets. It is currently
anticipated that this sale will generate approximately $20 million of net cash
for UDC after repayment of related debt. In addition, in light of the
uncertainties surrounding the outcome of the proposed restructuring, the
company expects to eliminate its deferred tax asset ($27 million) and make a
corresponding increase in its valuation allowance.
The restructuring plan is subject to significant conditions, including
negotiation and execution of definitive documentation and obtaining third
party agreements, and there can be no assurance that a restructuring plan
will be implemented in accordance with the terms described in this press
CONTACT: Michael D. Singer
Arthur Schmidt & Associates, Inc.