European Stars And Stripes (Newspaper) - December 23, 1987, Darmstadt, Hesse Page 6 the stars and stripes wednesday december 23. 1987 Pennzoil Texaco pact hailed criticized new York api a pad to end inc s mull billion Dollar feud with Pennzoil co. And extricate the Oil giant from bankruptcy court won endorsement from Pennzoil lawyers but Gol a mixed review from their to Aco adversaries. Under the agreement tiled tuesday with judge Howard Schwarz Harg. Texaco will pay Henna Al Ujj billion Cash and Pennzoil will scrap is $10.3 billion judgment held against the nation s third largest Oil concern. Texaco also will nay All other out summing debts to creditors estimated at about j2.5 billion once Epact is approved by Schwarb cab and two thirds of Tex Acci s shareholders the company could emerge from bankruptcy court Protection by March or april officials a Iid. In announcing the settlement saturday Texaco president James w. Kin car also said the company plans to embark on a restructuring aimed at Maxi Mizing shareholder value when the reorganization program is approved. In mid morning trading on the new York Slock Exchange Texaco Rose 12.5 cents to $38.62 i while Pennzoil fell 12.5 cents to 179.25. The plan was signed saturday by Kinnear and i. Hugh lid like Pennzoil s chairman and chief executive. Brought an end to four years of bitter feud ing and litigation thai stemmed from a takeover tight Over deity Oil co. In 198. A Houston jury ruled that tax co had improperly interfered with Pennzoil s acquisition of part of Getty. Last april Texaco filed for Protection from creditors under chapter 11 of the Federal bankruptcy code to avoid posting a potentially ruinous Security Bond equal id the 10.3 billion judgment while it appealed in the courts. Of Irvin Terrell one of Pennzoil s lawyers expressed satisfaction Wilh the settlement which will Texaco a Emeroh Legal dispute in. J. 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S slip Proe court Luilla a Urril Taiau n by Rel Cam Aryl Mai Ojales Mew qty ii be Jceal Appeal Coon of Cerf run 4ofinq Tracq Bond to Twu a pal 11 Tai Ficq ii4s Lor a Dover 11 com n White Pla Uii n Vil that of had a Friaco la pity to Ruoi 4 Mir i in b my a twit re the Nixb Man Sio to Max . Give Pennzoil an enormous amount of Cash to vastly increase its size. There were limes when i never thought we would gel a settlement Terrell said. I m just delighted for Hugh Lielke. He persevered for four Long years and got everything he Shannon a member of the jury that made he original Avard said he believes the settlement validates the jury s findings Tinaco attorneys however expressed mixed feel Ings about the settlement. Some had wanted to Pur sue an Appeal All the Way to the supreme court where Pennzoil possibly risked losing Cheryl Hing. However there also was he Chance that the High court would have refused to hear he Case which would have left Texaco with no Choice but to pay. I have some disappointment because i believe we were right on the Law said attorney Gibson Gayle or. But i think Tinl both entities at the end did the Best they could to resolve in. I guess i la get Back to the full time Job i had before this one in his statement following the agreement. Kin car said this settlement provides the Assurance our stockholders employees creditors and business part ners need that Texaco s competitive future will not be curtailed by either the massive judgment or settlement at a higher crippling used tic issued a statement saying the plan offers an expeditious and sensible solution and is in the Best interests of shareholders employees and cred Liedtke and to Ciao officials said committees rep resenting creditors and shareholders of both Compa Nies support the plan. Texaco s chairman Alfred c. Mccrane jr., joined Kin car in saying that Texaco agreed to the proposal after deciding it was the Best Deal possible under the circumstances which included the restraints of bankruptcy court. Although Texaco officials believe they could have been Able to negotiate a lower Price. Mccrane said we signed the Deal we re not going logo in Back and look behind it and i think it enables us to look medicaid programs prevent Many from getting Core group charges Washington a state medicaid programs we have unlike South Africa obviously move Toni a i
