The Columbia Gas System, Inc., and its principal pipeline subsidiary, Columbia Gas Transmission Corp. (CGT) have filed separate reorganization plans with the U.S. Bankruptcy Court for the District of Delaware.
The parent company's plan proposes total distributions of about $3.6 billion to creditors, including $2.3 billion to pay prepetition debt, with $1.1 billion in interest. CGT's plan proposes a total distribution of about $3.9 billion to creditors, including about $2.2 billion to the parent company to resolve secured and unsecured claims, about $1.2 billion for producer claims, and about $300 million toward third-party claims.
John H. Croom, Columbia Gas System chair-man and CEO, predicts distributions under the two plans before the end of the year. Croom also believes the companies will emerge from bankruptcy with investment-grade debt ratings. CGT claims the settlement has wide support from state regulatory commissions.
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.