TCR_Public/950616.MBX


BANKRUPTCY CREDITORS' SERVICE, INC.





        CENTRAL AND SOUTH WEST CORPORATION SUES EL PASO ELECTRIC COMPANY FOR
        MERGER TERMINATION FEE
   

         

            DALLAS, Texas--June 15, 1995--Central and South West Corporation (NYSE:
CSR) said today it has filed suit against El Paso Electric
Company (Nasdaq-NNM: ELPAQ)
, seeking a $25 million
        termination fee for El Paso Electric's breaches of the companies'
        terminated merger agreement, at least $3.6 million of rate case
        expenses and a declaratory judgment that Central and South West
        properly terminated the agreement.
   

      
       

     Central and South West also said it had caused a suit filed
        against it by El Paso Electric to be removed from state district
        court in El Paso, Texas, to the federal bankruptcy court in El Paso
        and had moved to transfer the case to the bankruptcy court in
        Austin, Texas.  The bankruptcy court in Austin has jurisdiction over
        El Paso Electric's bankruptcy case.
        


            On June 9, Central and South West notified El Paso Electric it
        was terminating a proposed merger between the companies because
        several closing conditions of the merger agreement had not been
        satisfied and could not be satisfied within the six-months extension
        that El Paso Electric had requested.  In addition, El Paso Electric
        had not cured its breaches of the agreement that earlier had been
        identified to El Paso Electric in a letter from Central and South
        West.
   

      
       

     Late that day, El Paso Electric filed suit against Central and
        South West in the 205th Judicial District Court in El Paso.  The
        suit seeks a $25 million termination fee from Central and South
        West, certain costs that Central and South West may be required to
        share under certain circumstances and additional unspecified
        damages.
        


            A Central and South West spokesperson said the company filed
        suit to protect its rights under the merger agreement.  In addition,
        the declaratory judgment would determine that Central and South West
        "owes EPE nothing under the merger agreement or otherwise."
   

      
       

     Central and South West Corporation is a public utility holding
        company based in Dallas.  It owns Central Power and Light Company,
        Public Service Company of Oklahoma, Southwestern Electric Power
        Company and West Texas Utilities Company.  These four subsidiaries
        provide electric utility service to 1.6 million customers in Texas,
        Oklahoma, Louisiana and Arkansas.
        


            Central and South West also owns Transok, Inc., an Oklahoma
        intrastate natural gas pipeline company, and several other
        subsidiaries.
   

      

        /CONTACT:  Media: Gerald R. Hunter, manager of external
        communications, 214-777-1165, or Financial: Sharon R. Peavy,
        director of investor relations, 214-777-1277, both for Central and South West
        Corporation/
   

      




        BANKRUPTCY COURT APPROVES SETTLEMENT AGREEMENT BETWEEN COLUMBIA
        TRANSMISSION AND PRODUCER CREDITORS
   

      
       

     WILMINGTON, Del.--June 16, 1995--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.'"
        


            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.
   

      

        /CONTACT:  W.R. McLaughlin, 302-429-5443, or H.W. Chaddock,
        302-429-5261, or (financial), T.L. Hughes, 302-429-5363, or K.P.
        Murphy, 302-429-5471, all of Columbia Gas/






        Grand Union announces exchange details  
   

      
       

     WAYNE, N.J.--June 16, 1995--The Grand Union
        Company
, which emerged from bankruptcy yesterday, has announced
        exchange details for its various pre-reorganization securities and
        for certain securities of its parent.
        


            The face amount of Grand Union's 11 1/4% Senior Notes, due 2000,
        and its 11 3/8% Senior Notes, due 1999, plus accrued but unpaid
        interest and interest on overdue interest as of June 15, 1995, will
        be exchanged pursuant to its Plan of Reorganization for 12% Senior
        Notes, due Sept. 1, 2004, issued pursuant to an Indenture between
        Grand Union and IBJ Schroder Bank & Trust Company, as Trustee, in a
        principal amount equal to approximately 113.739618% of the face
        amount of the 11 1/4% Senior Notes and approximately 112.792720% of
        the face amount of the 11 3/8% Senior Notes.
   

      
       

     Grand Union's 12 1/4% Senior Subordinated Notes, due 2002, 12
        1/4% Senior Subordinated Notes, Series A, due 2002, and its 13%
        Senior Subordinated Notes, due 1998, will be exchanged for common
        stock of the company to be issued under the Plan of Reorganization.
        Based on the Plan, holders of 12 1/4% Senior Subordinated Notes and
        Senior Subordinated Series A Notes shall receive approximately
        17.6742 shares of new common stock per $1,000 face amount, while
        holders of 13% Senior Subordinated Notes shall receive approximately
        17.2873 shares of new common stock per $1,000 face amount.
        


           The company said 15% Senior Zero Coupon Notes of Grand Union
        Capital Corporation, due July 15, 2004, Series A and B, will be
        exchanged for Series 1 Warrants of the company and Series 2 Warrants
        of the company to be issued under the Plan.  Based on the Plan,
        holders will receive approximately .6997 Series 1 Warrants and
        1.3994 Series 2 Warrants per $1,000 face amount.  Both series of
        warrants have a term of five years from June 15, 1995.  Series 1
        Warrants have a strike price of $30 per share of new common stock,
        while Series 2 Warrants have a strike price of $42 per share of new
        common stock.   
   

      
       

     Holders of 16.5% Senior Subordinated Zero Coupon Notes of Grand
        Union Capital Corporation, due Jan. 15, 2007, Series A and B, may
        exchange the Notes for Series 1 Warrants and Series 2 Warrants of
        the company.  Based on the Plan, holders will receive approximately
        .0805 Series 1 Warrants and .1611 Series 2 warrants per $1,000 face
        amount.
        


            Grand Union said it expects that its securities will be listed
        for trading on a national exchange.

         
        CONTACT: Grand Union Corporation, Wayne

                 Donald C. Vaillancourt, 201/890-6100
     
    




        HOUSE OF FABRICS ANNOUNCES FIRST-QUARTER RESULTS

        

            SHERMAN OAKS, Calif.--June 16, 1995--House
of Fabrics, Inc. (NYSE: HF)
today said that, despite continued losses for the
        first quarter of fiscal 1996, the company has achieved significant
        progress in stabilizing operations which resulted in first-quarter
        performance that exceeded the company's plan by approximately 20
        percent.
        


            "Looking closely at the figures, there is a greater sense of
        what's been achieved than there is in simply looking at the bottom
        line," said Gary L. Larkins, House of Fabrics president and chief
        executive officer.
   

      
       

     Mr. Larkins said that significant interest and restructuring
        costs and the effect of lost sales from store closings negatively
        impacted the company's overall performance in the quarter.  "We
        expect interest and restructuring costs to be reduced dramatically
        once the company completes its restructuring later this year," Mr.
        Larkins said.
        


            "Additionally, as we move forward, we expect to see more
        positive results in line with management's decision to downsize the
        chain and improve our marketing and merchandising strategies."
   

      
       

     For the three months ended April 30, 1995, House of Fabrics
        reported sales of $73.8 million, compared with sales of $114.7
        million during the comparable period the previous year.  The company
        said that the decrease in sales was primarily due to the closing of
        more than 250 stores since April 30, 1994.  During the first quarter
        ended April 30, 1995, the company said it increased inventory by
        $18.3 million in order to fully restock its remaining stores.
        


            The company reported a net loss for the first quarter of fiscal
        1996 of $8.0 million, or $0.58 per share, contrasted with a net loss
        of $1.5 million, or $0.11 per share, for the same period in fiscal
        1995. Per share earnings for the quarter are based on 13,697,107
        weighted average shares outstanding, which is the same number of
        weighted average shares outstanding in the comparable period a year
        earlier.
   

      
       

     The company said that reorganization costs associated with its
        Chapter 11 restructuring amounted to $3.5 million for the three
        months ended April 30, 1995.  No reorganization costs were reported
        for the period ending April 30, 1994.  Despite reduced levels of
        debt in the quarter ending April 30, 1995, the company said interest
        expense increased significantly by $1.2 million to $3.9 million from
        $2.7 million in the previous year due to an increase in its average
        effective borrowing rate to 11.5 percent from 6.3 percent a year
        earlier.
        


            According to House of Fabrics, earnings before interest, income
        taxes, depreciation, amortization and reorganization costs (EBIDTA),
        an alternative measure of operating performance generally reported
        by debtors in possession, were $1.5 million for the three months
        ended April 30, 1995, compared to $3.4 million for the comparable
        period in 1994, which it attributed primarily to the decrease in
        sales.
   

      
       

     House of Fabrics operates 364 continuing Company-owned House of
        Fabrics, Sofro Fabrics, Farbricland and Fabric King retail fabric
        and craft stores in 34 states and employs approximately 8,600
        people.  The Company and its subsidiaries filed to restructure under
        Chapter 11 on November 2, 1994.
        



                  Consolidated Statements of Operations (Unaudited)
                       House of Fabrics, Inc. and Subsidiaries
                               (Debtors-in Possession)
         
         For the Three Months
          Ended April 30,                  1995            1994
         
         Sales                         $73,759,000    $114,695,000
         Expenses:
          Cost of Sales                 36,875,000      62,168,000
          Selling                       30,819,000      42,997,000
          General and Administrative     4,616,000       6,152,000
          Interest                       3,928,000       2,688,000
          Depreciation and Amortization  1,933,000       2,628,000
         Total Expenses                $78,171,000    $116,633,000
         Loss Before Income
          Taxes (Benefit) and
          Reorganization Costs          (4,412,000)     (1,938,000)
         Reorganization Costs            3,522,000
         Loss Before Income
          Taxes (Benefit)               (7,934,000)     (1,938,000)
         Income Taxes (Benefit)             50,000        (468,000)
         Net Loss                      $(7,984,000)     (1,470,000)
         Loss Per Share                      (0.58)          (0.11)
         Weighted Average Number of
          Shares Outstanding            13,697,107      13,697,107
         

        /CONTACT:  Sandra Sternberg or Paulette Rapp of Sitrick And Company,
        310-788-2850/





         

        NEW ERA TRUSTEE FILES STATEMENT OF FINANCIAL AFFAIRS AND BANKRUPTCY
        SCHEDULES; FILING REFLECTS REVISED NUMBERS BASED ON 'NET'
        CALCULATIONS
   

      

            PHILADELPHIA, Pa.--June 16, 1995--John T. Carroll, III,
        Interim Trustee for the Bankruptcy Estate of the HREF="chap11.newera.html">Foundation for New
        Era Philanthropy
, today filed the Statement of Financial Affairs and
        Bankruptcy Schedules for the estate with the U.S. Bankruptcy Court.
        The filing is a result of the ongoing investigation of to determine
        the Foundation's actual assets and liabilities, and determine the
        extent of the creditor claims.  The Trustee and the forensic
        accounting firm of Miller, Tate and Co. are conducting the
        investigation with the assistance of Ciardi, Maschmeyer & Karalis.
   

      

            "In this filing we have attempted to reflect the true state of
        New Era's affairs by calculating the claims using a net cash basis
        in order to determine each creditor's actual loss," said Carroll.
        According to Carroll, the utilization of a net cash basis is an
        effort to create a level playing field among the creditors by
        eliminating the distortion created by rollover transaction, and
        claims seeking a doubling of funds under the "New Concept" program
        run by New Era.  As a result of this analysis, some creditors from
        the original bankruptcy filing may only have a non-pecuniary claim
        for promised matching funds under the "New Concept" program, but no
        claim for a net loss.
   

      
       

     Carroll explained that, in addition to New Era's records, the
        accountants derived the numbers used in the schedules from a
        combination of sources.  To gather the information, on May 31, 1995
        Carroll sent a letter to the more than 300 listed creditors seeking
        their cooperation in providing several documents, including records
        of canceled checks, wire transfer confirmations, and any
        correspondence or memos between New Era and the creditor.
        


            "This information is allowing us to compare the numbers and
        documents supplied by the creditors with what New Era's records
        indicated," Carroll said.  "This data is critical in assisting us to
        determine the actual claims and identify creditors," he added.  A
        second letter was sent on June 8, 1995, providing a "Proof of Claim"
        form for each creditor to file with the bankruptcy court in an
        effort to further assist in determining the extent and nature of
        claims being asserted by creditors.
   

      
       

     "In order to assist in the prompt administration of this estate
        and to help establish the accuracy of claims, it is crucial that
        creditors send us their documentation and file their proofs of claim
        as soon as possible," Carroll said.  He noted that although the
        deadline for filing claims does not expire until September 25, 1995,
        it would expedite the administration of the case if proofs of claim
        were filed prior to the first meeting of creditors scheduled for
        June 26, 1995.
        


            Copies of the statement of Financial Affairs and Bankruptcy
        Schedules are available upon payment of a nominal photocopying fee
        from COPY AMERICA, 27 Roland Ave., Mt. Laurel, NJ 08054, Attn: John
        Miner, or call 215-625-2845, fax 609-234-2849.
   

      

        /CONTACT:  Susan Gurevitz of Susan Gurevitz PR, 610-668-4335, or
        home, 610-664-3626; or Kina Simeone, 610-254-9578, both for John T.
        Carroll, III, Interim Trustee for the Foundation for New Era
        Philanthropy/
   


      


         

  PRESIDIO ANNOUNCES THAT INTEREST WILL NOT BE PAID ON ITS SENIOR SECURED NOTES
  AND THE CONTINUATION OF DISCUSSIONS ON RECAPITALIZATION
  


   DENVER, Co--June 16, 1995-- Presidio Oil Company
   (ASE:PRS/A)
today announced that it did not pay $2.2 million of
   interest due on June 15, 1995 in respect of the Company's 11.5% Senior
   Secured Notes Due 2000 (the "11.5% Notes").
   


   The indenture (the "Indenture") relating to the 11.5% Notes provides a
   thirty-day grace period, ending July 14, 1995, during which period the
   failure to make such interest payment does not cause an event of
   default thereunder. However, the Company does not currently anticipate
   that it will make this interest payment on or before July 14, 1995;
   and, in such event, an event of default under the Indenture would
   occur on such date.
   


   The Company also noted that, as previously announced, it did not pay
   $3.3 million of interest on its 13.25% Senior Gas Indexed Notes Due
   2002 (the "13.25% Notes") on June 15, 1995 which is the expiration
   date of a thirty day grace period relating to the non-payment of the
   interest due on the 13.25% Notes. As a result, an event of default
   under the indenture relating to the 13.25% Notes occurred on June 15,
   1995.
   


   The Company further stated that discussions are continuing with a
   number of the holders of the 11.5% Notes, as well as with holders of
   the Company's 13.25% Notes and its 9% Convertible Subordinated
   Debentures Due 2015 (the "9% Debentures"), with respect to a
   restructuring of the 11.5% Notes, the 13.25% Notes and the 9%
   Debentures. The restructuring is intended to eliminate the Company's
   cash flow deficit and thereby improve its financial condition. No
   assurance, however, can be given that the Company will be able to
   successfully conclude any of the restructuring arrangements being
   considered.
   


   Presidio Oil Company is an independent oil and gas company engaged in
   onshore oil and gas exploration, development and production in the
   continental United States. Presidio's common shares are traded on the
   American Stock Exchange.

    

   CONTACT: Presidio Oil Company | 212/593-2244