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 (Date earliest event reported) August 26, 1996 Commission Registrant, State of Incorporation, I.R.S. File Number Address and Telephone Number Employer Identification No. 1-11299 ENTERGY CORPORATION 72-1229752 (a Delaware corporation) 639 Loyola Avenue New Orleans, Louisiana 70113 Telephone (504) 529-5262 1-2703 ENTERGY GULF STATES, INC. 74-0662730 (a Texas corporation) 350 Pine Street Beaumont, Texas 77701 Telephone (409) 838-6631 Form 8-K Page 1 August 28, 1996 Item 5. Other Information Entergy Corporation and Entergy Gulf States, Inc. Court Approval Given To Settlement Agreement In Cajun Bankruptcy On August 26, 1996, Judge Frank J. Polozola of the U.S. District Court for the Eastern District of Louisiana approved the terms of a previously disclosed settlement agreement among Entergy Gulf States, Inc., the Trustee in the Cajun Electric Power Cooperative (Cajun) bankruptcy, and representatives of the Rural Utilities Service (RUS). The settlement gives the RUS several options for disposing of Cajun's 30% undivided interest in the River Bend nuclear unit. It also commits Cajun to fund its full share of the estimated decommissioning obligation for the River Bend nuclear unit by setting aside the sum of $125 million in a decommissioning trust fund, regardless of the option the RUS chooses. Under the settlement, RUS will have the option to seek a buyer for Cajun's interest in the River Bend unit, 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, Inc., which owns the other 70 % undivided interest in the River Bend unit. Under each of these options, Cajun will be released from its unpaid past, present and future liability for River Bend costs and expenses. The settlement further provides for Entergy Gulf States, Inc. to recover all funds paid by it into the registry of the court. These funds have been accumulating from payments made by Form 8-K Page 2 August 28, 1996 Entergy Gulf States, Inc. under a preliminary injunction entered by the court, for its share of operations and maintenance expenses associated with its 42% share of the Big Cajun 2, Unit 3, coal-fired generating facility, of which Cajun is the majority owner and operator. Other provisions of the settlement involve the mutual release and forgiveness of claims among the parties. All litigation between Cajun and Entergy Gulf States, Inc. will be dismissed, and a small portion of Cajun's transmission assets will be transferred to Entergy Gulf States, Inc. Entergy Gulf States, Inc. also will release its claims against the RUS. The settlement was announced on April 29, 1996, by Bankruptcy Trustee Ralph R. Mabey, who submitted it to Judge Polozola for approval in the Cajun bankruptcy proceeding. The Judge's order directs the Trustee to take all steps necessary to implement the settlement. The Unsecured Creditors Committee in the Cajun bankruptcy proceeding objected to the settlement, but was overruled by Judge Polozola. It is uncertain whether the Unsecured Creditors Committee will appeal. Entergy Gulf States, Inc., is a wholly-owned electric and gas utility subsidiary of Entergy Corporation. Form 8-K Page 3 August 28, 1996 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 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 and Chief Accounting Officer Dated: August 28, 1996