Central and South West Corp. has settled its pending litigation with El Paso Electric Co., resolving issues surrounding the 1993 termination of their proposed merger.
Central and South West will pay El Paso Electric $35 million, while both utilities have agreed to release all future claims against each other. In April, a bankruptcy judge ruled that Central and South West owed El Paso Electric a $25-million merger termination fee under their agreement, and said Central and South West also might owe an additional $18 million in interest. Under the terms on El Paso's bankruptcy reorganization plan, the first $20 million will be assigned to its former common and preferred shareholders of record as of Feb. 12, 1996.
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