IRVINE, Calif. -- April 29, 1996 -- Platinum
Software Corp. (NASDAQ:PSQL), Monday reported its financial results
for the third quarter of fiscal 1996.
Revenues for the third quarter of fiscal 1996, ended March 31,
1996, were $8.4 million as compared to revenues of $13.4 million for
the third quarter of fiscal 1995. A net loss of $14.5 million or
$1.08 per share was reported for the third quarter of fiscal 1996,
as compared to a loss of $1.9 million or $.15 per share for the same
quarter a year ago.
During the quarter, the company recorded a restructuring charge
of $4.2 million related to the downsizing of the company to a 325
The company's balance sheet as of March 31, 1996, showed cash of
$14.3 million, accounts receivable of $9.0 million, as well as
deferred revenue of $9.0 million.
During the third quarter of fiscal 1996, Platinum Software Corp.
announced the appointment of two senior executives, L. George Klaus,
president and chief executive officer and William R. Pieser, senior
vice president of marketing and business development.
The company also announced that during the quarter, it reached
agreement with the attorneys for the plaintiff class regarding
reinstating the $15.0 million debenture issued in a settlement of a
class action securities litigation.
The company is required to repay the debenture in two principal
installments of $7.5 million plus accrued interest, on Sept. 20,
1996 and Feb. 28, 1997. The company has the right to pay this
debenture in either cash or by issuing common stock.
L. George Klaus, president and chief executive officer, said:
"Shortly, I will be announcing a senior vice president of field
operations. With this addition, we are prepared to move Platinum
forward. I am satisfied with the comprehensive financial statement
review that we recently conducted. I am also encouraged by the sell-
through of Platinum(r) SQL NT."
More information about Platinum Software Corp. and its products
and services is available at the Platinum World Wide Web site
Platinum Software, the financial software company, develops and
markets leading client/server software products for corporations
worldwide. The company's products enable organizations to scale
their technology investments to meet the changing needs of their
businesses. Founded in 1984, Platinum Software has headquarters in
Platinum Software Corp.
Condensed Consolidated Balance Sheets
March 31, June 30,
Cash and cash equivalents $ 14,336 $ 26,276
Restricted cash -- 476
Accounts receivable, net 8,978 14,205
Notes receivable from divestitures, net 1,665 957
Inventories 457 672
Prepaid expenses and other 1,714 1,785
Total current assets 27,150 44,371
Property and equipment, net 9,497 11,961
Notes receivable from divestitures, net -- 3,534
Software development costs, net 2,423 3,000
Acquired intangible assets, net 1,305 2,403
Other assets 478 564
$ 40,853 $ 65,833
Liabilities and Stockholders' Equity
Current portion of class action settlement $ 16,717 $ --
Accounts payable 2,983 3,920
Accrued expenses 8,178 5,964
Accrued restructuring costs 2,472 1,192
Deferred revenue 9,011 8,980
Total current liabilities 39,361 20,056
Long-term portion of class action settlement -- 15,812
Preferred stock 31,996 31,996
Common stock 14 13
Additional paid-in capital 81,933 80,391
Accumulated foreign currency translation
adjustments 240 304
Accumulated deficit (112,691)
Total stockholders' equity 1,492 29,965
$ 40,853 $ 65,833
Platinum Software Corp.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Nine Months Ended
March 31, March 31,
1996 1995 1996 1995
License fees $ 3,619 $ 8,386 $ 14,596 $ 25,730
Consulting and 2,153 2,691 8,254 9,021
Support services 2,590 2,183 7,801 6,134
Royalty income - 112 505 394
8,362 13,372 31,156 41,279
Cost of revenues 5,107 4,950 15,657 14,972
Gross profit 3,255 8,422 15,499 26,307
Sales and marketing 4,659 5,119 15,353 13,888
General and 5,673 940 8,960 3,943
Software development 3,047 4,316 11,192 13,341
Charge for 4,200 - 9,800 -
17,579 10,375 45,305 31,172
Loss from operations (14,324) (1,953) (29,806)
Other income (expense), (186) 31 (146) 159
Loss before provision (14,510) (1,922) (29,952)
for income taxes
Provision for income - 8 - 20
Net loss $(14,510) $(1,930) $(29,952) $
Net loss per share $ (1.08) $ (0.15) $ (2.20) $
Shares used in 13,442 12,869 13,602 12,760
computing net loss
CARLSBAD, Calif. -- April 29, 1996 -- Coded
Communications Corp. (NASDAQ Electronic Bulletin Board symbol: CODD
and VSE symbol: CCI) Monday announced higher sales and sharply
improved operating results for the first quarter ended March 30,
For the first quarter of 1996, the company reported a 21 percent
increase in sales over the same period in 1995. Sales in 1996 were
$2,696,000 compared with $2,224,000 in the prior year. Operating
income before interest, income taxes and extraordinary item was
$102,000 in 1996 compared with an operating loss of $1,519,000 in
The net loss in 1996, including an extraordinary gain, was
$55,000 or 1 cent per share compared with a net loss of $1,723,000
or 14 cents per share in 1995.
Jack Robinson, president and CEO since March 1995, when he
assumed the leadership of Coded to implement a turnaround and
restructuring, commented, "We are pleased to report our third
consecutive quarterly operating profit and sharply improved
financial results. For the first quarter of 1996, Coded reported a
21 percent increase in sales over the prior year, a 37 percent
decrease in operating expenses and continuing improvement in gross
margin on sales.
"While efforts to restructure our business have resulted in a
significant improvement in financial results, new order bookings for
our mobile data system business continue to be below our
expectations. While we anticipate improved bookings levels for
mobile data systems beginning in the second quarter, the timing of
orders may impact third quarter sales levels."
He added, "Our primary goals for the first half of 1996 are to
continue to improve financial performance and negotiate a
recapitalization of the company. Over the last 12 months, we have
restructured over $4 million in unsecured debt and we are attempting
to negotiate a restructuring of $6.6 million in secured debt. These
ongoing efforts are a key to Coded's future."
With headquarters in Carlsbad, Coded Communications is a leader
in providing wireless data and aerospace telemetry solutions to
public safety, government entities and commercial customers
Coded Communications Corp.
Summarized Financial Information
(Amounts in Thousands - Except per Share)
Three Months Ended
March 30, April 1,
Net sales $ 2,696 $ 2,224
Gross margin 1,082 (2)
Operating expense 980 1,517
Income (loss) before
interest and taxes 102 (1,519)
Loss before extraordinary item (107) (1,723)
Net loss (55) (1,723)
Net loss per share $ (.01) $ (.14)
Average shares outstanding 14,688 12,568
(1) Results for 1996 include an extraordinary gain of $52,000 from
the extinguishment of debt.
(2) See "Cautionary Statements" in the company's quarterly report
on Form 10-QSB.
CONTACT: Coded Communications
Jack Robinson, 619/431-1945
Lawrence Gibson, 619/431-0077, ext.246
GAINESVILLE, Ga. -- April 29, 1996 -- Credit Depot
Corporation (NASDAQ:LEND) today reported improved results of
operations for the quarter ending March 31, 1996. The Company had a
net loss of $474,302 or $(.18) per share for the quarter, as
compared to a net loss of $1,287,942 or $(.38) per share for the
quarter ending March 31, 1995.
Revenues for the quarter were $1,138,190, compared with revenues
of $537,558 reported for the same period a year ago. Through the
nine months ended March 31, 1996, the Company reported a net loss of
$2,759,236 or $(.90) per share compared to a loss of $3,062,462 or
$(.91) for the nine months ended March 31, 1995.
Management noted the increase in revenue for the quarter
resulted from "improved profit margins." Management elaborated by
saying "The improvement in the profit margin is a result of the
relationship Credit Depot has developed with a major loan
securitizer under which Credit Depot has been selling loans to this
entity for inclusion in a securitized mortgage transaction. These
sales allowed the Company to participate in securitization profits,
although at a lower profit margin than if the Company had completed
its own securitization and acted as the servicer. While management
is encouraged by the decline in losses, the losses have continued as
a result of the limitations in generating loan volume which is
primarily a result of the capital constraints on the Company.
Addressing the Company's capital requirements to fund growth
continues to be management's top priority."
In that regard, the Company announced that the $5,550,000
principal amount of Senior Subordinated Notes which were issued by
the Company in 1994 became due on March 30, 1996. As part of its
broader capital planning program, the Company is seeking financing
to repay the Notes and is also discussing a restructuring of the
Notes with certain of the holders. To date, the holders have
advised the Company that they are forbearing taking action to
enforce the Notes.
Credit Depot Corporation is a multi-state financial services
company that provides residential, real estate financing to
individuals unable to secure loans through conventional sources.
The Company currently originates loans through its offices in
Florida, Georgia, Indiana, North Carolina, Ohio, South Carolina,
Tennessee, and Kentucky. These loans are collateralized by first
mortgages, primarily on owner-occupied residential properties.
Credit Depot Corporation
Three Months Ended Nine Months Ended
March 31 March 31
1996 1995 1996 1995
Finance income and
fees earned $332,128 $62,721 $627,622
Net gain on sale of
receivables $754,402 $449,540 $1,062,744
Other income $51,600 $25,297 $77,968
Income (loss) before
income taxes $(474,302) $(1,287,942) $(2,759,236)
Net income (loss) $(474,302) $(1,287,942) $(2,759,236)
Average Shares Outstanding 3,378,761 3,378,761 3,378,761
Net income (loss)
per share(a) $(.18) $(.38) $(.90)
(a) After preferred stock dividends of $144,000 and $0 for the
quarter ending March 31, 1996 and 1995, and $271,677 and $0 for the
nine months ending March 31, 1996 and 1995, respectively.
CONTACT: Gerald F. Sullivan
John P. Kehoe/Van Negris
Kehoe, White, Savage & Co., Inc.
SANTA CLARA, Calif. -- April 29, 1996 -- Fresh
Choice Inc. (Nasdaq:SALD) today announced improved financial
performance for the first quarter of 1996, an agreement for the
purchase of $5.5 million of the Company's preferred stock by
Crescent Real Estate Equities Limited Partnership of Fort Worth,
Texas and the election of two new, outside directors.
The company had a net loss of $866,000, or $0.16 per share, for
the first quarter of 1996 (12 weeks). This compared to a loss of
$1,284,000, or $0.23 per share, for the comparable period last year.
The first quarter net loss in 1996, which included no tax benefit
and was therefore also the pre-tax loss, was 60% less than the pre-
tax loss of $2,140,000 in the prior-year period.
Shares used in computing per-share amounts in the first quarter
were 5,584,000 in 1996 and 5,483,000 in 1995.
Sales for the first quarter of 1996 were $18,061,000, an
increase of $1,127,000, or 6.7% over the first quarter of 1995.
This reflects the opening of seven restaurants since January 1995
and the closing of four units beginning late last year. Up to six
additional restaurants are being considered for closing as part of
the company's previously announced restructuring plan.
Restaurant-operating expenses for the first quarter this year
were 62.0% of sales compared with 67.8% for the same period of the
prior year, a reduction of 5.8 percentage points. Additionally,
general and administrative expenses for the 1996 period include
costs for consultants, most of whom have completed their work.
Subject to approval by the shareholders of Fresh Choice Inc. and
other closing conditions, Crescent Real Estate Equities Limited
Partnership will purchase 1,187,906 shares of convertible, non-
voting preferred stock of Fresh Choice Inc. for $4.63 per share (a
total of $5.5 million) in a private offering.
Charles A. Lynch, chairman of Fresh Choice, said, "We're making
steady progress under Bob Ferngren's leadership as chief executive
officer. We'll be profitable this year if we meet our planned
budgets and if we continue to get favorable response from our
customers to the improvements we're making.
"There were no surprises in the first quarter of 1996. We
projected a loss. Our comparable, real-store sales decreased just
0.3%, which is very encouraging when compared to the 17.3% decrease
for the same period 1995.
"This comparable-sales progress appears to be primarily the
result of customer satisfaction with the recent introduction of our
line of new salads, soups and pastas, with special toppings and
garnishes that are offered in almost all of our restaurants,"
"They were developed by our staff and an outside professional
firm. Then, we carefully evaluated them with customers in our
Mountain View restaurant. The system-wide roll out will be
completed in mid-May.
"The opening of our new prototype restaurant in Roseville,
Calif., is on schedule for May 14. We'll launch our new
merchandising effort there and move elements of it into other units
as rapidly as possible.
"Roseville will present a totally different, more customer-
friendly atmosphere with warmer colors, faster movement through the
restaurant, greater comfort, improved signs and descriptions of our
products, and an outdoor-market-display concept for our food items,"
"As part of this new merchandising thrust, customers will be
able to purchase some of our most popular products, such as salad
dressings and muffin mixes. And we'll be highlighting some of our
vendors' popular, branded products, as well.
"All of these actions will be supported by an aggressive
marketing campaign directed at our core customers that will be
managed by Tim O'Shea, who was recently appointed our vice president
of marketing. He brings us strong capabilities in operations,
marketing and product development from 25 years of experience with
Saga Corp. and W.R. Grace.
"We're going to tell our customers unmistakably what we are and
what we offer them in healthy, delicious, fresh products," Ferngren
said. "We'll communicate a fully integrated message with a more
definitive logo, readable and attractive descriptions of our menu
items, chefs for our pasta, bakery and salad stations who will
interact with our customers, and strong, complementary advertising."
The two new directors, elected on April 11, are M. Michael
Casey, senior vice president and chief financial officer of
Starbucks Corp., and Vern O. Curtis, a senior restaurant executive
for many years.
"Mike Casey and Vern Curtis have first-hand restaurant
management experience and will add highly valuable strategic and
financial counsel as we prepare to move into a new growth phase for
Fresh Choice," Lynch emphasized. "We're delighted to have them as
part of our team."
Prior to joining Starbucks, Casey was a director and executive
vice president of Family Restaurants, Inc., and president and chief
executive officer of El Torito, one of its chains. Before that he
was a vice president of W.R. Grace & Co. and deputy group executive
of its restaurant group. He has a bachelor's degree in economics
from Harvard College and an M.B.A. from Harvard Business School.
Curtis was a senior executive with Denny's, a diversified
restaurant company with more than 2000 units, for 20 years. He
served as its president and chief executive officer from 1980 to
1985 and chairman from 1985 to 1987. For the next three years, he
was dean of the School of Business and Economics at Chapman College
in Orange, Calif. Since 1991, he has been self-employed as an
investor. He's a graduate of the University of Utah.
Lynch described the agreement for a $5.5 million investment by
Crescent "as another piece of very good news for Fresh Choice.
We're delighted to have Crescent's involvement in our company.
"We will use this new investment for future expansion,
remodeling our restaurants, installing a point-of-sales system,
upgrading our information systems, and additional working capital,"
Lynch explained. "Crescent's involvement will also provide
opportunities for us with our future real estate requirements."
"As we continue to look for opportunistic investments, we're
excited about Fresh Choice," said Gerald Haddock, president and
chief operating officer of Crescent. "We believe that the strategic
handling of the real estate-needs and real estate-related products
of publicly traded companies like Fresh Choice will provide value-
creation opportunities in the future for their shareholders and
The 1,187,906 shares of non-voting Series B preferred stock are
convertible into Series A voting preferred stock. In the event of a
failure by the Company to meet agreed upon earnings targets through
1998, the holder of the Series A preferred would be entitled to
elect a majority of the directors. Upon achievement of certain per-
share price tests, the Company may force the conversion of Series A
preferred stock to common stock.
Crescent will have an option to purchase an additional 593,953
shares of non-voting preferred at a price of $6.00 per share for a
period of three years following the closing.
Fresh Choice Inc. operates 54 casual, upscale restaurants in
California, the state of Washington, Texas and the Washington, D.C.
metropolitan area. The company's restaurants offer customers an
extensive selection of high-quality, freshly prepared traditional
and specialty salads, hot pasta dishes, soups, bakery goods, and
desserts in a self-service format.
FRESH CHOICE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share amounts)
First Quarter Ended
March 24, 1996 March 19, 1995
NET SALES $18,061 100.0% $16,934 100.0%
COST AND EXPENSES:
Cost of sales 5,053 28.0% 4,583 27.0%
Restaurant operating expenses:
Labor 5,906 32.7% 5,914 34.9%
Occupancy and other 5,284 29.3% 5,565 32.9%
Depreciation and amortization 817 4.5% 1,263 7.5%
General and administrative
expenses 1,796 9.9% 1,754 10.4%
Total costs and expenses 18,856 104.4% 19,079 112.7%
OPERATING LOSS (795) (4.4)% (2,145)
Interest income -- -- 46 0.3%
Interest expense (71) (0.4)% (41)
Interest income (expense) - net (71) (0.4)% 5 0.1%
LOSS BEFORE INCOME TAXES (866) (4.8)% (2,140)
Benefit from income taxes -- -- (856)
NET LOSS $ (866) (4.8)% $(1,284)
Net loss per common share $ (0.16) $ (0.23)
Shares used in computing per
share amounts 5,584 5,483
Number of restaurants:
Open at beginning of period 55 51
Open at end of period 54 53
FRESH CHOICE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 24, Dec. 31,
Cash and cash equivalents $ 932 $ 1,294
Receivables 144 207
Inventories 427 465
Pre-opening costs 38 117
Refundable income taxes 1,602 1,602
Prepaid expenses and other current
assets 470 686
Total current assets 3,613 4,371
PROPERTY AND EQUIPMENT, net 31,671 31,983
LEASE ACQUISITION COSTS, net 613 630
DEPOSITS AND OTHER ASSETS 344 322
TOTAL $36,241 $37,306
LIABILITIES AND STOCKHOLDERS' EQUITY
Line of credit $ 391 $ --
Accounts payable 2,794 2,909
Accrued salaries and wages 1,610 1,121
Sales tax payable 905 627
Other accrued expenses 2,885 2,954
Restructuring reserve 4,294 5,266
Current portion of capital lease
obligations 316 406
Total current liabilities 13,195 13,283
CAPITAL LEASE OBLIGATIONS 60 89
OTHER LONG TERM LIABILITIES 1,555 1,643
Total liabilities 14,810 15,015
Preferred stock, $.001 par value;
250,000 shares authorized; none
Common stock - $.001 par value;
7.5 million shares authorized; shares
outstanding: 1996 - 5,583,737;
1995 - 5,582,449 41,625 41,619
Accumulated deficit (20,194) (19,328)
Total stockholders' equity 21,431 22,291
TOTAL $36,241 $37,306
Among these risks and uncertainties are the ability to implement
and the effectiveness of the previously announced restructuring
plan; the ability of Fresh Choice to obtain funds to pursue its
future plans; future profitability; customer receptiveness to new
products and the new prototype restaurant; competitive pressures in
the food-service marketplace; the changing tastes of consumers; the
effect of general economic conditions; and the ability to secure and
retain services of experienced personnel.
Additional risks and uncertainties may be included in Fresh
Choices's most recent annual report on Form 10-K and quarterly
reports on Form 10-Q on file with the Securities and Exchange
CONTACT: Fresh Choice Inc.
Charles A. Lynch, 408/986-8661
HERSHEY, Pa., April 29, 1996 - href="chap11.nssi.html">Nuclear Support Services,
Inc. (Nasdaq: NSSI) announced that the U.S. Bankruptcy Court
Middle District of Pennsylvania, on April 24, 1996, confirmed the
Company's Reorganization Plan to exit bankruptcy subject to closing
of a new credit facility by June 30, 1996. The Reorganization Plan
includes payment of creditors in full and was overwhelmingly
approved by those eligible to vote on the Plan.
The Company has executed a commitment letter with the Bank of
New York for a five year, $14.9 million credit facility consisting
of a $3.9 million term loan and an $11 million working capital
revolving credit line. Closing of this facility is subject to
certain requirements which the Company expects to meet in a timely
On a related note, at a special meeting held on March 29, 1996,
the shareholders of NSSI approved a proposal to merge NSSI into a
newly created Delaware corporation, Canisco Resources, Inc. A date
has not been set for this merger.
Ralph A. Trallo, NSSI President, stated, "We have made
substantial progress in a very short time. The approval of our Plan
by creditors and shareholders is indicative of their support of the
direction in which the Company is heading. Management has worked
with the Bank of New York to structure a credit facility which will
enable us to fulfill the requirements of our Reorganization Plan and
provide the ability to resume a growth mode. We expect to close on
the BNY facility in a timely fashion."
CONTACT: Ralph A. Trallo, President of Nuclear Support Services,
BAY SAINT LOUIS, Miss., April 29 /PRNewswire/ - Casino Magic
Corp. (Nasdaq: CMAG), today announced an important second step
towards obtaining a Louisiana gaming license. Crescent City Capital
Development Corp. ("Crescent City"), a wholly owned subsidiary of
Capital Gaming International, Inc.
(OTC: GDFI), received Bankruptcy
Court approval to transfer ownership and its gaming license to
Casino Magic as a part of Crescent City's Amended Plan of
Reorganization. On March 26, 1996, Casino Magic received Louisiana
Riverboat Gaming Commission approval for the transfer of ownership
of Crescent City, and the relocation of its gaming license to
Bossier City, Louisiana.
This transaction is valued at $56.5 million, of which, $15
million is payable in cash and the remaining balance in debt,
including up to $6.5 million in gaming equipment liability.
Casino Magic, through a wholly owned subsidiary, intends to
operate a new casino in Bossier City, Louisiana. Casino Magic owns
20 acres of land in Bossier City on the Red River with immediate
access from Interstate 20, a major artery between the Dallas-Ft.
Worth area and Bossier City.
The final step in consummating this transaction is expected
tomorrow, April 30, 1996 at a hearing for approval by the Riverboat
Gaming Enforcement Division of the Louisiana State Police.
Casino Magic Corp., a Minnesota corporation with principal
offices in Bay Saint Louis, Miss., operates gaming casinos in Bay
Saint Louis and Biloxi, Miss., Deadwood, S.D., Neuquen City and San
Martin de los Andes, Argentina, and Porto Carras and Xanthi, Greece.
CONTACT: Jay S. Osman, Chief Financial Officer, Casino Magic
Corp., 601-466-8010, or email, email@example.com
BATON ROUGE, La., April 29, 1996 - The trustee in the
Cajun Electric Power Cooperative
bankruptcy, representatives of the
Rural Utilities Service (RUS) and Entergy Gulf States (formerly Gulf
States Utilities, Inc.) have agreed to terms for a settlement of the
River Bend issues in Cajun's bankruptcy case, it was announced today
by the trustee and Entergy Gulf States.
The settlement, which would be advanced independently of the
reorganization plans proposed in the Cajun bankruptcy, is subject to
further approvals within the United States Government, the Board of
Directors of Entergy Corporation, the Federal Court hearing the case
and appropriate regulatory agencies. The trustee will submit the
proposal for approval to Judge Frank J. Polozola who has presided
over much of the litigation to be settled.
The three parties described their proposal as an equitable
solution to the River Bend aspects of the Cajun case.
"This settlement reflects a balanced approach to resolving these
complex issues," said Trustee Ralph R. Mabey. "It is a solution
that represents a true compromise which fairly treats each party."
Under its key provisions, the settlement gives the RUS several
options for disposing of Cajun's 30 percent ownership of the River
Bend nuclear unit. It commits Cajun to fund its full share of the
estimated decommissioning obligation for River Bend by setting aside
the sum of $125 million in a decommissioning trust fund, regardless
of the option the RUS chooses. It also provides for the release and
forgiveness of substantial claims and potential claims by Entergy
Gulf States against Cajun.
Under the options provided in the settlement, the RUS may seek a
buyer of Cajun's 30 percent interest River Bend, take title to
Cajun's interest in its own name, or forego both of these options
and relinquish Cajun's interest at no cost to Entergy Gulf States,
which owns the other 70 percent. Under all of these options, Cajun
will be released from its unpaid past, present and future liability
for River Bend costs and expenses.
Another provision of the settlement allows Entergy Gulf States
to recover all funds previously paid and to be paid by it into the
registry of the Court at the time the settlement transaction becomes
final. These funds have been accumulating from payments made by
Entergy Gulf States, under a preliminary injunction entered by the
Court, for its share of operations and maintenance expenses
associated with its 42 percent share of the Big Cajun 2 Unit 3 coal-
fired generating facilities, of which Cajun is the majority owner
Other provisions of the settlement involve the mutual release
and forgiveness of several hundred million dollars of claims among
the parties. All litigation between Cajun and Entergy Gulf States
would be dismissed and released, and a small portion of Cajun's
transmission assets would be transferred to Entergy Gulf States.
Entergy Gulf States would also release its claims against the RUS.
Without waiving its claims against Cajun, the RUS would release
its lien on the River Bend unit, which partially secures Cajun's
debt to the RUS.
"Entergy Gulf States has accepted this settlement because it is
comprehensive in nature and offers the most reasonable compromise
amid the circumstances of the Cajun bankruptcy proceeding," said
Michael G. Thompson, Entergy's senior vice president and general
counsel. "We are hopeful that the Bankruptcy Court will accept the
settlement and allow it to take effect."
Speaking for the RUS, Program Advisor Larry A. Belluzzo said,
"The settlement will allow the RUS to maximize the value of Cajun's
interest in River Bend and end the years of litigation over the
construction and operation of the River Bend plant."
The settlement stipulates the transactions contemplated by the
parties must be completed by June 1, 1997, unless regulatory
approvals are pending at the time, in which case the trustee would
ask the Court to extend the deadline.
CONTACT: Ralph R. Mabey, Trustee, 801-320-6700, or 504-291-3060;
Clark T. Colvin, Cajun Electric Power, 504-291-3060; Cyril Guerrera,
Entergy Gulf States, 504-576-4238; Larry A. Belluzzo, Program
Advisor,202-720-1265, or James G. Bruen, Civil Division, Department of
Justice, 202-307-0493, both of Rural Utilities Service