TCR_Public/950911.MBX BANKRUPTCY CREDITORS' SERVICE, INC.




OCTA OKs final Bankruptcy Consensus Plan; annual $15 million
        deficit to significantly affect bus system

        
        
            ORANGE, California -- September 11, 1995 -- The
Orange
        County Transportation Authority (OCTA) board of directors Monday
        approved the joint agreement of the href="chap11.orange.html">County of Orange Bankruptcy
        Consensus Plan.
        


            The consensus plan calls for every agency represented by the
        Orange County Investment Pool (OCIP) and the County to share in the
        financial burden of the recovery.  OCTA will play a key role in
        meeting the County's financial needs for bankruptcy recovery.
        


            Under the joint agreement, OCTA will experience an annual
        deficit of $15 million, following a first year loss of $38 million.
        The loss will significantly affect te bus system, according to an
        OCTA report discussed Monday.  An independent review from the State
        Legislative Analyst's Office agreed that bus riders will be
        impacted.
        


            The consensus plan builds on other recovery documents the League
        of Cities, Family of Governments, and County financial advisors
        developed.  The plan also culminates weeks of intense discussions
        and negotiations mediated by the Orange County Business Council.
        


            The joint agreement encompasses the major points of the
        consensus plan approved in concept by the OCTA board on Aug. 28.
        The consensus recovery plan transfers $38 million a year for 15
        years from OCTA to the County of Orange beginning July 1, 1996.  The
        plan also calls for transfer of $23 million of the County's $33
        million gas tax funds to OCTA for 16 years beginning July 1, 1997.
        In the first year, the loss to OCTA will be a full $38 million.
        


            The plan contains several additional factors based on further
        discussions among the Orange County Business Council, the OCIP
        Committee, the cities, and County advisors and staff.  Those changes
        include: