Big Rivers/LG&E Energy Celebrate
Approval Of Reorganization Plan
LOUISVILLE, Ky., June 9, 1997 - href="chap11.bigrivers.html">Big Rivers Electric Corporation
and LG&E Energy Corp. (NYSE: LGE) achieved a major victory
today when Big Rivers' financial plan of reorganization was
accepted by its creditors and approved in U.S. Bankruptcy Court.
The only creditor objecting to the substance of the plan was
PacifiCorp. This is the final step toward resolving Big Rivers'
bankruptcy and finalizing an agreement for LG&E Energy to
lease Big Rivers' generating assets, subject only to regulatory
"This is momentous day for Big Rivers and LG&E
Energy," said George Basinger, senior vice president of
Power Operations. "We're over the threshold, and anxious to
move full speed to implement our partnership. Together, our
companies have so much to gain and so much to offer customers and
the Commonwealth of Kentucky. Low rates, economic develop
opportunities, new power marketing potential and a strong
competitive foothold in the energy industry make this a premier
deal for everyone."
Under the terms of the reorganization plan, an LG&E Energy
subsidiary will lease the generating assets of Big Rivers for 25
years for annual payments starting at $31.5 million, and will
provide power to Big Rivers to serve its member cooperatives and
their 90,000 customers at reduced rates and to operate and
maintain the Big Rivers plants. LG&E Energy will have access
to about 1,700 megawatts of low-cost generating capacity to
enhance its strategic marketing position.
According to Deborah Dewey, vice president of operations for
Western Kentucky Energy Corp., "Today is a new beginning for
Big Rivers and the people of Western Kentucky served by the
member cooperatives. Several years of turmoil are now behind Big
Rivers and we can look forward to a new era of stability and
economic progress. We can begin the celebration today and
conclude it when regulatory approvals are received.
I and others at LG&E Energy are excited about becoming a
part of the fabric of Western Kentucky where we plan to
contribute meaningfully to the quality of life and economic
opportunities for everyone."
The final step in the Big Rivers/LG&E Energy partnership
is to gain regulatory approval from the Kentucky Public Service
Commission and Federal Energy Regulatory Commission.
Big Rivers Electric Corporation provides power to four
distribution cooperatives, Henderson Union Electric Cooperative,
Green River Electric Corporation, Jackson Purchase Electric
Cooperative Corporation and Meade County Rural Electric
Cooperative Corporation. The distribution cooperatives serve
91,000 customers in 22 Western Kentucky counties.
LG&E Energy Corp., a Fortune 500 company, is an industry-
leading energy services holding company headquartered in
Louisville, Ky. The company has assets and operations in retail
and wholesale power and natural gas services and marketing. It
has offices, operations and partnership projects throughout the
U.S. as well as Canada, Argentina and Spain.
SOURCE LG&E Energy Corp. /CONTACT: Claudia Hendricks,
LG&E Energy Corp., 502-627-2506, or digital pager,
502-421-6905/ /LG&E Energy Corp.'s press releases available
through Company News On-Call by fax 800-758-5804, ext. 515672, or
Phoenix Network and US ONE Communications
Corp. Extend Letter of Intent Despite Lucent Petition
GOLDEN, Colo., June 9, 1997 - Phoenix Network, Inc. (AMEX:
PHX) announced today that it has elected to extend the
termination date of its letter of intent with href="chap11.usone.html">US One Communications Corporation
("US One") regarding the terms of a merger of the two
companies. This news comes on the heels of a filing against US
One by Lucent Technologies, Inc. of a petition for involuntary
bankruptcy under Chapter 7 of the Bankruptcy Code.
Notwithstanding the Lucent petition, Phoenix believes that a
business combination between it and US One remains viable, and
Phoenix and US One are working toward a resolution of the Lucent
dispute that will be beneficial to all parties involved.
Phoenix's letter of intent with US One, previously set to
expire on June 9, 1997, has been extended to July 7, 1997.
Phoenix Network is an inter-exchange carrier (IXC) which, in
addition to its core long distance products and services, offers
Internet access, enhanced fax services, international call-back,
conference calling, travel cards, debit cards, custom invoices,
management reports, and a variety of other products and services.
Phoenix Network's World Wide Web address is
US ONE Communications Corp. is a national value-added
telecommunications service company built to capitalize on the
trend toward increasing competition in the telecommunications
industry. US ONE's service offerings include Carrier Controlled
Switching (CCS), exchange access service and, in the near future,
wholesale and retail local dialtone.
SOURCE Phoenix Network, Inc. /CONTACT: Monica Williamson of
Phoenix Network Investor Relations, 800-448-0804/