SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: April 29, 1996
Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
1-11299 ENTERGY CORPORATION 13-5550175
(a Delaware corporation)
639 Loyola Avenue
New Orleans, Louisiana 70113
Telephone (504)529-5262
1-2703 ENTERGY GULF STATES, INC. 74-0662730
(formerly Gulf States Utilities Company)
(a Texas Corporation)
350 Pine Street
Beaumont, Texas 77701
Telephone (409)838-6631
Item 5. Other Events
Entergy Corporation and Entergy Gulf States, Inc.
The following press release was released on April 29, 1996:
BANKRUPTCY TRUSTEE, RURAL UTILITIES SERVICE AND
ENTERGY GULF STATES AGREE TO SETTLEMENT IN CAJUN BANKRUPTCY
BATON ROUGE, La. -- The trustee in the Cajun Electric Power
Cooperative bankruptcy, representatives of the Rural Utilities
Service (RUS) and Entergy Gulf States (formerly Gulf States
Utilities Company) 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 in 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 and operator.
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 that time, in which case the trustee
would ask the court to extend the deadline.
SIGNATURE
Pursuant to the requirements of the Securities
Exchange Act 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned
hereunto duly authorized.
Entergy Corporation
Entergy Gulf States, Inc.
By: /s/ Louis E. Buck, Jr.
Louis E. Buck, Jr.
Vice President and
Chief Accounting Officer
Entergy Gulf States, Inc.
By: /s/ Louis E. Buck, Jr.
Louis E. Buck, Jr.
Vice President,
Chief Accounting Officer
and Assistant Secretary
Dated: April 30, 1996