WALTHAM, Mass. -- July 15, 1996 -- Interleaf, Inc.
(NASDAQ: LEAF) today announced preliminary first quarter results and
a restructuring to reduce expenses and heighten the Company's
strategic focus on its integrated document management business. The
Company expects to report revenues of approximately $19.1 million
and a loss of approximately $3.5 million to $4 million for the first
quarter ended June 30, 1996. The restructuring will result in a one-
time charge of approximately $4 million to $5 million, subject to
final cost analysis, in the second quarter ending September 30,
1996.
Ed Koepfler, Interleaf president and CEO, commented: "Over the
past several years the growth in our integrated document management
(IDM) business has been more than offset by the continuing decline
in stand-alone high-end products, historically the Company's main
business, and this trend accelerated in the first quarter. We are
concentrating our development, marketing and sales efforts on IDM in
order to retain market leadership in this emerging marketplace. We
have also taken actions that will cut over $2 million out of our
quarterly expense rate by our third fiscal quarter. We expect that
these actions will bring expenses in line with current revenue
levels and accelerate our return to profitability when our IDM
business starts to drive growth in total revenues."
The Company disclosed that the number of employees after the
restructuring is now about 530, down from 647 on March 31, 1996.
The Company has implemented plans to complete the second and final
phase of its move from its former corporate headquarters and to
reduce field office expenses.
The final financial results for the quarter ended June 30, 1996
will be released on July 26, 1996.
CONTACT: Interleaf
G. Gordon M. Large 617.768.1012
or
Dana Finnegan 617.768.1038
CORNING, N.Y. -- July 15, 1996 -- Corning
Incorporated (NYSE:GLW) said today that its 1996 second quarter net
income from continuing operations totaled $93.8 million, or $0.41
per share, an increase of 17 percent over adjusted second quarter
1995 earnings of $0.35 per share. The adjusted 1995 second quarter
results exclude a special charge taken by Corning to fully reserve
its investment in Dow Corning Corporation and a restructuring
provision.
Second quarter sales from continuing operations totaled $913.7
million, an increase of 14 percent over adjusted 1995 levels.
"The improvement in overall operating performance demonstrates
the strength and market position of our core businesses and
technologies," said Roger G. Ackerman, chairman and chief executive
officer. "Looking ahead, we are optimistic about the second half of
the year. We are moving aggressively to capture the growth in key
markets with expansions under way for optical fiber, advanced
materials, television glass and projection lenses."
The company said its sales and earnings growth was fueled by
strong demand for optical fiber, cable and components for
telecommunications markets, for ceramic substrates for environmental
applications, and for life science products. In consumer products,
results improved compared with 1995's second quarter. However,
results from information display businesses were down from year
earlier levels due to expansion-related manufacturing issues.
Equity company earnings, excluding Dow Corning, increased
approximately 10 percent from adjusted 1995 levels, due primarily to
solid results from optical fiber equity companies in Europe and
Australia and from Samsung-Corning Company Ltd. in South Korea.
Continuing operations include the company's Communications,
Specialty Materials and Consumer Products segments. As previously
announced, on May 14, 1996, Corning is pursuing the spin-off of its
clinical laboratory and pharmaceutical services businesses in a
transaction expected to be completed by year-end. Therefore,
Corning has begun to account for the Health Care Services segment as
discontinued operations.
The company recorded a loss from discontinued operations of
$56.8 million, or $0.25 per share, in the second quarter of 1996.
The loss includes a charge for the estimated costs related to the
spin-offs and a charge to increase reserves for government claims at
Corning Clinical Labs, offset by the estimated results of the
segment through the anticipated date of the spin-off.
Corning's total net income, including the loss from discontinued
operations, was $37.0 million, or $0.16 per share, for the second
quarter 1996, compared with a net loss of $297.2 million, or $1.32
per share, in the same period of 1995.
Commenting on discontinued operations, Ackerman said, "Corning
Pharmaceutical Services is benefiting from the high growth in the
contract research field as part of the trend to bring new drugs to
the marketplace at a faster pace. At Corning Clinical Laboratories,
operations continue to stabilize, but the dynamics of that market
continue to be difficult."
Established in 1851, Corning Incorporated creates leading-edge
technologies for the fastest growing segments of the world's
economy. Corning manufactures optical fiber, cable and components,
high- performance glass and components for televisions, and other
electronic displays for communications and communications-related
industries; advanced materials for the scientific, life sciences and
environmental markets; and consumer products. Corning's total
revenues from continuing operations in 1995 were $3.3 billion.
The following accounting and reporting changes, that had been
announced previously, are referenced in this second quarter 96 press
release.
Corning Incorporated and Subsidiary Companies
Consolidated Statements of Income
(Unaudited; in millions, except per-share amounts)
Six Months Twenty-Four Three Months Twelve Weeks
Ended Weeks Ended Ended Ended
June 30, June 18, June 30, June 18,
1996 1995 1996 1995
Revenues
Net sales $1,751.3 $1,397.0 $913.7
$764.8
Royalty, interest
and dividend
income 15.0 14.6 7.0
8.2
1,766.3 1,411.6 920.7 773.0
Deductions
Cost of sales 1,085.7 867.2 568.7
474.8
Selling, general
and administrative
expenses 306.8 241.0 148.4
124.9
Research and
development
expenses 90.2 77.4 44.9
39.9
Provision for
restructuring
and other
special charges 26.5
26.5
Interest expense 36.0 31.6 18.3
16.8
Other, net 11.2 9.7 4.1
1.8
Income from continuing
operations
before taxes on
income 236.4 158.2 136.3
88.3
Taxes on income
from continuing
operations 79.2 47.9 45.7
25.1
Income from continuing
operations before
minority interest and
equity earnings 157.2 110.3 90.6
63.2
Minority interest in
earnings of
subsidiaries (28.0) (28.3) (15.8)
(17.3)
Dividends on
convertible
preferred
securities
of subsidiary (6.9) (6.3) (3.5)
(3.1)
Equity in earnings
(losses) of
associated companies:
Other than
Dow Corning Corp. 34.1 29.4 22.5
21.0
Dow Corning Corp. (348.0)
(365.5)
Income (loss) from
continuing
operations 156.4 (242.9) 93.8
(301.7)
Income (loss) from
discontinued
operations,
net of income
taxes (47.6) 25.1 (56.8)
4.5
Net Income (Loss) $108.8 $(217.8) $37.0
$(297.2)
Per Common Share:
Continuing
operations $0.68 $(1.08) $0.41
$(1.34)
Discontinued
operations (0.21) 0.11 (0.25)
0.02
Net Income (Loss) $0.47 $(0.97) $0.16
$(1.32)
Dividends Declared $0.36 $0.36 $0.18
$0.18
Weighted Average
Shares Outstanding 227.3 225.9 227.3
226.3
The accompanying notes are an integral part of these statements.
Corning Incorporated and Subsidiary Companies
Condensed Consolidated Balance Sheets
(In millions)
June 30, 1996 Dec. 31, 1995
(Unaudited)
Assets
Current Assets
Cash and short-term investments $122.2 $187.6
Receivables, net 550.9 479.5
Inventories 501.0 426.5
Deferred taxes on income and
other current assets 136.5 102.8
Total current assets 1,310.6 1,196.4
Investments 339.9 364.9
Plant and Equipment, Net 1,769.2 1,599.6
Goodwill and Other Intangible
Assets, Net 347.1 330.8
Other Assets 273.8 305.3
Net Assets of Discontinued
Operations 1,736.7 1,664.7
$5,777.3 $5,461.7
Liabilities and Stockholders' Equity
Current Liabilities
Loans payable $415.0 $143.1
Accounts payable 166.2 202.6
Other accrued liabilities 431.6 396.3
Total current liabilities 1,012.8 742.0
Other Liabilities 634.7 618.3
Loans Payable Beyond One Year 1,303.8 1,340.0
Minority Interest in
Subsidiary Companies 302.5 269.8
Convertible Preferred Securities
of Subsidiary 364.9 364.7
Convertible Preferred Stock 23.3 23.9
Common Stockholders' Equity 2,135.3 2,103.0
$5,777.3 $5,461.7
Corning Incorporated and Subsidiary Companies
Notes to Consolidated Financial Statements
Quarter 2, 1996
(1) In May 1996, Corning's Board of Directors approved a plan to
distribute to its shareholders on a pro rata basis all of the shares
of Corning Clinical Laboratories Inc. and Corning Pharmaceutical
Services Inc. (the "Distributions"). The result of the plan will be
the creation of two independent, publicly-owned (but as yet unnamed)
companies. Corning has submitted to the Internal Revenue Service a
request for a ruling that the Distributions will qualify as tax-free
distributions under the Internal Revenue Code of 1986. The final
terms of the Distributions, which are subject to approval by Corning
s Board of Directors, will be set forth in registration statements
to be filed with the Securities and Exchange Commission and in an
Information Statement to be distributed to Corning's shareholders.
The Distributions are expected to occur by the end of 1996.
Corning's investment in equity and intercompany debt of the
companies to be distributed totaled $1.7 billion at June 30, 1996.
Corning currently estimates that, prior to the Distributions, the
companies to be distributed will borrow approximately $600 million
to $800 million from third-party lenders and repay intercompany debt to
Corning, reducing Corning's investment to approximately $900 million
to $1.1 billion. Corning's stockholders equity will be reduced by
Corning's investment in these companies at the date of the
Distribution. Corning intends to use the proceeds from the
repayment of intercompany debt to repay third-party debt, repurchase shares or
invest for future strategic uses.
As a result of the plan to distribute the clinical-laboratory and
pharmaceutical-services businesses, Corning's consolidated financial
statements and notes report these businesses, which comprised
Cornings Health Care Services segment, as discontinued operations. Prior
period financial statements have been restated accordingly.
The loss from discontinued operations in the second quarter of 1996
includes a charge for the estimated costs related to the
Distributions and a charge to increase reserves for government
claims, offset by the estimated results of operations of the
businesses to be distributed from April 1, 1996, through December
31, 1996, the anticipated date of the Distributions. Income from
discontinued operations for the second quarter of 1995 includes an
after-tax restructuring charge of $24.4 million.
As disclosed in Corning's 1995 Annual Report on Form 10-K,
government investigations of certain practices by clinical
laboratories acquired in recent years are ongoing. In the second
quarter, the U.S. Department of Justice notified Corning Clinical
Labs that it has taken issue with certain payments received by Damon
Corporation from federally funded healthcare programs prior to its
acquisition by Corning. Corning Clinical Labs management has met
with the U.S. Department of Justice several times to evaluate the
substance of the government's allegations. Discussions with the
U.S. Department of Justice are in a preliminary state and consequently,
it is not possible to predict the outcome of this matter with any
certainty.
Corning Clinical Labs has established reserves equal to management's
estimate of the low end of the range of potential amounts which
could
be required to satisfy the government's claims. However, it is
possible that the aggregate claim (which might include restitution,
multiple damages, other civil penalties or criminal fines) could be
in excess of established reserves by an amount which could be
material to Corning's results of operations and cash flows in the
quarter in which such claim is settled. Corning does not believe
that this claim will have a material adverse impact on Corning's
overall financial condition.
(2) Earnings per common share are computed by dividing net income
less dividends on Series B convertible preferred stock by the
weighted average number of common shares outstanding during the
period. The weighted average shares outstanding for the second
quarter and first half of 1996 was 227.3 million and 226.3 million
and 225.9 million, respectively, for the same periods in 1995.
Series B preferred dividends amounted to $0.5 million and $1.0
million in the second quarter and first half, respectively, in both
1996 and 1995.
(3) Depreciation and amortization charged to continuing operations
during the first half of 1996 and 1995 totaled $141.8 million and
$120.2 million, respectively.
(4) Corning's effective tax rate for continuing operations was 33.5%
for the second quarter and first half of 1996. Excluding the impact
of the restructuring charge, the effective tax rate was 31% and
31.5% for the second quarter and first half of 1995. The lower 1995 rate
was due to a higher percentage of Corning's earnings from
consolidated entities with lower effective tax rates.
(5) Effective January 1, 1996, Corning made several changes to its
accounting calendar to make Corning's results more comparable with
other companies and to enable Corning to report results of certain
subsidiaries on a more current basis.
First, Corning adopted an annual reporting calendar. Previous years
operated on a fiscal year ending on the Sunday nearest December 31.
As a result, Corning's 1996 quarters will include results for three
calendar months while Corning's quarters previously included results
for 12 weeks (16 weeks in the third quarter).
Second, Corning's 1996 quarters will include three months of
operations for all significant subsidiaries and affiliates.
Previously, certain subsidiaries reported two months of results in
the first quarter and four months of results in the third quarter.
Third, Corning Life Sciences, Inc. and certain other consolidated
subsidiaries that previously reported on a fiscal year ending
November 30 adopted a calendar year end. The December 1995 results
of these subsidiaries were recorded in retained earnings during the
first quarter of 1996.
Second quarter and first half 1995 financial statements were not
restated for the calendar change. The following table presents
unaudited pro forma results for the second quarter and first half
1995 as if this change had occurred at the beginning of 1995 (in
millions except per-share amounts):
Three Six
Months Ended Months Ended
June 30, 1995 June 30, 1995
(pro forma) (pro forma)
Sales $801.3 $1,568.8
Net income (loss)
Before Dow Corning Corporation
and restructuring $80.3 $136.8
Equity in losses of
Dow Corning Corporation (365.5) (348.0)
Provision for restructuring (16.1) (16.1)
Continuing operations (301.3) (227.3)
Discontinued operations 3.1 29.5
Net loss $(298.2) $(197.8)
Net income (loss) per common share
Before Dow Corning Corporation
and restructuring $0.35 $0.60
Equity in losses of
Dow Corning Corporation (1.62) (1.54)
Provision for restructuring (0.07) (0.07)
Continuing operations (1.34) (1.01)
Discontinued operations 0.02 0.13
Net loss per common share $(1.32) $(0.88)
Corning Corporation.
Corning also discontinued recognition of equity earnings from Dow
Corning Corporation beginning in the second quarter of 1995.
Corning recognized equity earnings from Dow Corning Corporation of $17.5
million in the first quarter of 1995.
(7) In the second quarter of 1995, Corning recorded a restructuring
charge in continuing operations totaling $26.5 million ($16.1
million after- tax) or $0.07 per share.
CONTACT: Kathryn C. Littleton, (607) 974-8206
Paul A. Rogoski, (607) 974-8832
or
Investor Relations Contact:
Richard B. Klein, (607) 974-8313
Katherine M. Dietz, (607) 974-8217
RANCHO CUCAMONGA, Calif. -- July 15, 1996 -- Cadiz
Land Company Inc. (NASDAQ:CLCI) announced Monday that on Friday,
July 12, the U.S. Bankruptcy Court confirmed the Plan of
Reorganization of Sun World
International Inc. which provides for
the acquisition of Sun World by CLCI for consideration of
approximately $175 million.
The Plan of Reorganization was confirmed following an
affirmative vote by all classes of interest.
Sun World, one of California's leading agricultural concerns
with approximately $150 million in revenues, filed for Chapter 11
bankruptcy protection in October 1994 after debt restructuring
negotiations with its existing creditors failed.
Assuming satisfaction of all Plan requirements (including
completion of satisfactory documentation), ownership of Sun World
will be transferred to CLCI within the next several weeks.
Following completion of the acquisition, the combined company
will own in excess of 60,000 acres in California of which more than
20,000 acres are developed to agriculture and its portfolio will
include contract rights to the principal water supply systems in
California.
CONTACT: Cadiz Land Company Inc.-
Keith Brackpool, 909/980-2738;
or
Stoorza, Ziegaus & Metzger Inc.;
Cathy Ann Connelly or Fiona Hutton, 213/891-2822
SANTA MONICA, Calif. -- July 15, 1996 -- L.A. Gear
Inc. (NYSE:LA) Monday announced its financial results for the
quarter and six months ended May 31, 1996.
For the quarter ended May 31, 1996, the company reported a net
loss and a loss applicable to common stock of $7.5 million ($0.33
per share) and $9.6 million ($0.42 per share), respectively, on net
sales of $38.5 million.
For the quarter ended May 31, 1995, the company reported a net
loss and a loss applicable to common stock of $5.9 million ($0.26
per share) and $7.8 million ($0.34 per share), respectively, on net
sales of $79.0 million.
For the six months ended May 31, 1996, the company reported a
net loss and a loss applicable to common stock of $6.4 million
($0.28 per share) and $10.5 million ($0.46 per share), respectively,
on net sales of $117.1 million.
For the six months ended May 31, 1995, the company reported a
net loss and a loss applicable to common stock of $17.6 million
($0.77 per share) and $21.3 million ($0.93 per share), respectively,
on net sales of $148.4 million.
Net sales for the second quarter of 1996 decreased by 51.3
percent compared with the same period of 1995 primarily due to (1)
reduced demand domestically and internationally for the company's
children's lighted footwear and adult products and (2) domestically,
a $10.6 million reduction in sales to Wal-Mart.
Net sales for the first six months of fiscal 1996 decreased by
21.1 percent compared with the prior year period primarily due to
(1) reduced worldwide demand for the company's children's lighted
footwear and, to a lesser extent, adult products, partially offset
domestically by an increase in sales of adult product to Wal-Mart
and (2) a decrease in the average domestic selling price (which was
accompanied by a decrease in the average unit cost).
International net sales represented 27.3 percent and 37.3
percent of the company's total net sales for the six months ended
May 31, 1996 and 1995, respectively.
Total sales of the company's children's lighted shoes decreased
by $20.6 million and $32.7 million to $12.4 million and $32.8
million during the second quarter and first half of 1996,
respectively, compared with the same periods in 1995.
Domestic sales of children's lighted product decreased by $10.9
million and $20.1 million in the second quarter and first half of
1996, respectively, compared with the same periods in 1995 due to a
reduction in both volume and average selling price per pair.
Internationally, children's lighted sales decreased by $9.7
million and $12.6 million, principally due to reduced volume in
Europe and Asia, in the quarter and six months ended May 31, 1996,
respectively, compared with the same periods in 1995.
The gross margin for the second quarter and first half of 1996
decreased to 25.2 percent and 29.2 percent from 31.6 percent and
30.8 percent during the comparable periods in 1995, respectively.
These decreases were primarily due to a decline in international
gross margins to 18.4 percent and 26.6 percent in the second quarter
and first half of 1996, respectively, from 39.3 percent and 34.1
percent in the comparable 1995 periods principally as a result of an
increase in reserves for slow moving and discontinued lighted
inventory recorded in the second quarter of fiscal 1996.
Total selling, general and administrative expenses decreased by
$12.0 million, or 36.9 percent, to $20.5 million in the second
quarter of 1996 and decreased by $21.5 million, or 32.9 percent, to
$43.9 million in the first half of 1996 compared with the respective
prior year periods.
Domestic selling, general and administrative expenses declined
by $9.6 million, or 39.5 percent, to $14.7 million in the second
quarter of 1996 and by $17.0 million, or 34.6 percent, to $32.2
million in the first half of 1996 from the comparable prior year
periods.
International operating expenses decreased by $4.5 million, or
27.8 percent, to $11.7 million compared with $16.2 million in the
first half of 1995. In the first half of fiscal 1996, the overall
reduction in expenses was principally due to the benefits realized
from the implementation of the company's 1995 corporate
reorganization plan.
Cash and cash equivalent balances increased by $10.4 million from
Nov. 30, 1995 to $46.3 million at May 31, 1996 primarily due to a
reduction in working capital partially offset by the funding of the
1996 first half operating loss.
During the first half of 1996, inventory decreased from $51.7
million (5.3 million pairs) at Nov. 30, 1995 to $37.2 million (3.9
million pairs) at May 31, 1996 due to delivery of substantially all
of the balance of Wal-Mart's 1995 minimum purchase commitment in the
first half of fiscal 1996 and the company's continuing efforts to
effectively manage inventory levels.
Accounts receivable decreased from $46.6 million at Nov. 30,
1995 to $34.6 million at May 31, 1996 principally due to reduced
sales.
At June 30, 1996, the company had a combined domestic and
international order backlog of $51.8 million, $37.4 million of which
is primarily for new in-line products scheduled to ship in the July
and August period and $14.0 million of which is scheduled to ship in
the company's fourth quarter.
The combined backlog at June 30, 1995 was $102.9 million, $68.0
million of which was scheduled to ship in the July and August 1995
period and $32.7 million of which was scheduled to ship in the
fourth quarter of 1995.
The lower backlog at June 30, 1996 is principally due to (1) the
inclusion in the backlog of June 30, 1995 of $21.1 million of orders
under the company's agreement with Wal-Mart, (2) an approximate
$19.5 million decrease in orders for children's lighted product and
(3) reduced overall demand for the company's adult products.
Children's lights as a percentage of the total June 30, 1996 and
1995 backlog, excluding Wal-Mart orders, were 32.0 percent and 43.5
percent, respectively.
L.A. Gear designs, develops and markets a broad range of quality
athletic and lifestyle footwear for adults and children.
L.A. GEAR INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per-share amounts)
(unaudited)
Three months Six months
ended May 31, ended May 31,
1996 1995 1996 1995
Net sales $38,472 $79,014 $117,138 $148,406
Cost of sales 28,774 54,044 82,886 102,696
Gross profit 9,698 24,970 34,252 45,710
Selling, general
and administrative
expenses 20,517 32,544 43,913 65,382
Litigation settlement
income, net (1,955) (1,775) (1,955) (1,869)
Interest expense, net 521 415 1,134 742
Loss before minority
interest (9,385) (6,214) (8,840) (18,545)
Minority interest 1,905 303 2,459 992
Net loss (7,480) (5,911) (6,381) (17,553)
Dividends on mandatorily
redeemable Series A
Preferred Stock (1,002) (1,916) (3,044) (3,791)
Dividends on Series B
Preferred Stock (1,108) -- (1,108) --
Loss applicable to
common stock $(9,590) $(7,827) $(10,533) $(21,344)
Loss per common share
before preferred
dividends $ (0.33) $ (0.26) $ (0.28) $ (0.77)
Loss per common share $ (0.42) $ (0.34) $ (0.46) $ (0.93)
Weighted average
common shares
outstanding 22,937 22,937 22,937 22,937
L.A. GEAR INC. AND SUBSIDIARIES
Selected Consolidated Balance Sheet Data
(in thousands)
May 31, Nov. 30,
1996 1995
(unaudited)
Cash and cash equivalents $ 46,337 $ 35,956
Accounts receivable, net 34,595 46,630
Inventories 37,169 51,677
Working capital 97,045 103,999
Convertible subordinated
debentures 50,000 50,000
Mandatorily redeemable Series A
Preferred Stock plus
accrued and unpaid dividends -- 107,746
Accumulated deficit (179,814) (169,281)
Shareholders' equity (deficit) 59,437 (40,627)
BATON ROUGE, La. -- July 15, 1996 -- Ten Louisiana
electric cooperatives are asking a federal bankruptcy court to
declare that their wholesale power supply contracts are null or, if
valid, not assignable to another party without the cooperatives'
permission. The move is part of the cooperatives' efforts to
protect their customers from excessively high electric rates which
would result from the court-appointed trustee's plan to bring Cajun
Electric Power Cooperative, Inc., out of bankruptcy.
The motion for a declaratory judgment was filed July 15 in the
U.S. District Court, Middle District of Louisiana, by the Cajun
Electric Members Committee against Ralph R. Mabey, trustee for
Cajun in the Chapter 11 bankruptcy case (Civil Action No. 94-2763-
B2, Bankruptcy Case No. 94-11474).
The legal status of the contracts lies at the heart of the Cajun
bankruptcy case, said David Kleiman, an attorney for the Members
Committee. "Bidders are making offers for the non-nuclear assets
and the market represented by the all-requirements power supply
contracts of the 12 cooperatives which comprise Cajun. Ultimately
these offers would be paid for through whatever wholesale rates are
established. Our legal standing under these contracts is the key to
protecting 1 million people across the state from being saddled with
excessively high electricity costs for decades to come."
The Members' filing approaches the issue on several fronts, such
as: (1) the contracts are null and void because they were not
approved by the Louisiana Public Service Commission, (2) even if
valid, the contracts cannot be assigned to anyone else without the
permission of the member cooperatives, and (3) the trustee's plan is
a poorly disguised attempt to create a new company -- on paper only
-- which would illegally assume the contracts and strip the Members
of their rights under the contracts and the Cajun Electric bylaws.
The Members Committee informed the trustee in January that the
contracts are not assignable and explained that any prospective
bidder who wants to supply power to the Members would have to
negotiate new power supply agreements, Kleiman said. "This is an
issue that has been pending for some time, but the trustee's action
-- and that of any other party wishing to acquire the contracts
-- makes it important to push for a ruling at this stage in the
bankruptcy process," Kleiman said. "We have strong precedent in
the litigation of a similar case to show that the contracts cannot
be assigned to anyone else without the cooperatives' permission."
To date, four reorganization plans have been filed with the
bankruptcy court. The Members Committee has joined with
Southwestern Electric Power Company and Entergy Gulf States
(formerly Gulf States Utilities Company) to file one of the plans,
which provides significant value to the estate while proposing more
competitive wholesale rates to the member cooperatives than the
competing plans. The Members Committee includes 10 of the 12 Cajun
cooperatives: Beauregard Electric Cooperative, Inc., Concordia
Electric Cooperative, Inc., Dixie Electric Membership Corp.,
Jefferson Davis Electric Cooperative, Inc., Northeast Louisiana
Power Cooperative, Inc., Pointe Coupee Electric Membership Corp.,
South Louisiana Electric Cooperative Association, Southwest
Louisiana Electric Membership Corp., Valley Electric Membership
Corp. and Washington-St. Tammany Electric Cooperative, Inc.
Cajun Electric is a generating and transmission cooperative. In
1976, the 12 member cooperatives which comprise Cajun entered into
wholesale power supply contracts, agreeing to purchase their power
requirements from Cajun until 2021. In 1990, nine of the
cooperatives extended their contracts to 2026.
CONTACT: Dann Pecar Newman & Kleiman, Professional Corp.
David H. Kleiman or James P. Moloy, 317/632-3232