TCR_Public/950828.MBX BANKRUPTCY CREDITORS' SERVICE, INC.



OCTA OKS IN CONCEPT BANKRUPTCY CONSENSUS
        PLAN; dramatic bus service cuts outlined in funding loss report

        
            ORANGE, California -- August 28, 1995 -- The
Orange
        County Transportation Authority (OCTA) board of directors Monday
        voted to approve in concept the

County of Orange
bankruptcy recovery
        consensus plan where each agency represented by the Orange County
        Investment Pool (OCIP) and the county will share the financial
        burden.


            The consensus recovery plan transfers $38 million a year for 15
        years from OCTA to the County of Orange beginning July 1, 1996,
        according to a bankruptcy recovery report presented to the OCTA
        board Monday.  The plan also calls for transfer of $23 million of
        the county's yearly $33 million gas tax funds for 16 years beginning
        July 1, 1997, the report stated.  The County of Orange would retain
        the remaining $10 million for road operations and maintenance.  

        
            In addition, the county will carry a repayment claim of $225
        million to the OCTA to reconcile the net loss of $15 million
        annually for 15 years.
   

     
            As part of the consensus plan, a $50 million litigation trust
        fund will be established.  Former State of California Treasurer Tom
        Hayes will serve as trustee and chairman of a litigation committee
        to oversee efforts to prosecute, collect and/or settle pool-related
        claims, the report stated.
      

  
            The County of Orange, the OCIP Committee, OCTA and each "Option
        A" pool participant must approve the consensus plan for it to become
        effective.  Special legislation also will be required to activate
        the agreement.
        


        OCTA Bus Operations Service Cuts Predicted
        


            OCTA developed two plans for bus service cuts in response to the
        TDA funding loss in the bankruptcy consensus proposal, according to
        the report.
        


            The first projection assumes "a worst case scenario" of $38
        million in lost TDA revenues annually with no opportunities to
        recoup the monies.  Under the first option, OCTA would have to
        eliminate 49 of 73 bus routes representing a dramatic 57 percent
        service reduction.  Service also would be less frequent on the
        remaining 24 routes.
        


            OCTA would discontinue all express bus, rail connectors,
        community routes, Headstart routes, and group service, the report
        said.  OCTA would also discontinue service to South Orange County
        and drastically reduce weekend service from 43 to 15 routes on
        Saturday and from 35 to 0 routes on Sunday.
        


            The Authority would have to limit ACCESS service for persons
        with disabilities to those living within 3/4 miles of the remaining
        big bus system.  South Orange County ACCESS service would cease, the
        report stated.
        


          Under this scenario, OCTA's bus fleet would shrink from 628
        vehicles to 283.  The workforce would see a corresponding layoff of
        about 500 employees from administration and bus drivers and
        maintenance workers.  
        


        $15 Million Deficit Scenario
        


            The second scenario assumes a $23 million backfill leaving a
        deficit of $15 million each year (following a first year loss of the
        full $38 million).  OCTA would use the $23 million in gas tax
        apportionments transferred from the county on other OCTA or
        countywide approved and funded transportation projects, thereby
        freeing up unrestricted funds for the bus system.
        


            The $15 million loss also has significant negative impacts.
        OCTA would eliminate 31 of 73 bus routes representing a 21 percent
        service cut.  The remaining 42 routes would experience a service
        reduction of 10 percent.  OCTA would also have to reduce weekend
        service from 43 to 36 routes on Saturday and 35 to 30 routes on
        Sunday.
        


            Express bus and rail connections as well as the eight new
        customized community routes (set for implementation Oct. 1) would
        discontinue.  OCTA would limit ACCESS service to a federally-
        required 3/4 mile corridor of the fixed route big bus system and
        service to South Orange County would be reduced from 22 routes to
        eight routes.  The bus fleet would shrink from 628 vehicles to 507
        and OCTA would layoff 200 employees, the report stated.
        


            The bus service cut analysis took into account that OCTA would
        maintain the most productive routes (using ridership and farebox
        recovery criteria).  Services used by those who have no other means
        of transportation received priority over discretionary services such
        as express and rail connector routes.  The service cut analysis also
        assumed federal operating and property tax funding levels to hold at
        their current levels, the report stated.
        


            Once final legislation is signed by Governor Pete Wilson, and
        the exact funding loss in known, OCTA will begin work on a detailed
        analysis of the bus operations impacts and return to the OCTA board
        in 120 days with a report.  
        


            At that time, the board will face making several key policy
        decisions such as refilling the $15 million deficit through cutting
        other programs or where and how bus operations service cuts should
        be made, according to the report.
        


            The consensus proposal is in response to a comprehensive
        financial recovery plan presented by the County of Orange in mid-
        August.  That plan contained six alternatives -- all of which called
        for taking $35 to $76 million from OCTA by diverting Transportation
        Development Act (TDA) monies used to fund bus operations.
        Subsequent to unveiling of the County's comprehensive plan other
        agencies developed recovery proposals for consideration.
        


            In response to the County's proposed comprehensive financial
        recovery plan with its multiple alternatives, Wilson requested the
        Orange County Business Council help negotiate a consensus proposal
        between the county and the OCIP.  When the plan is finalized, and
        the OC Board of Supervisors adopt it, the OCTA board will hold a
        special meeting to consider the joint agreement.
        
        


        CONTACT:  OCTA
                  Elaine Beno, 714/560-5571

                   




        BONNEVILLE PACIFIC CORPORATION ANNOUNCES SETTLEMENT

        
            SALT LAKE CITY, August 28, 1995 -- href="chap11.bonneville.html">Bonneville Pacific
        Corporation
, through its Chapter 11 Bankruptcy Trustee (Roger G.
        Segal), announces today that a settlement has been reached with one
        of the numerous defendants in the civil action entitled "Roger G.
        Segal, Trustee v. Portland General, et al," now pending in the
        United States District Court for the District of Utah, Case No. 92-C-
        364J.
        


            The settlement is with Hanifen-Imhoff (Denver, Colorado) and
        provides for a payment to Bonneville Pacific Corporation of the
        total sum of One Million Seven Hundred and Fifty Thousand Dollars
        ($1,750,000.00).
        


            The settlement is conditioned upon approval by the United States
        Bankruptcy Court and the entry of an appropriate dismissal order by
        the United States District Court.
        


        /CONTACT:  Roger G. Segal, Chapter 11 Trustee for Bonneville Pacific
        Corporation, 801-532-2666/