[Federal Register Volume 59, Number 159 (Thursday, August 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-20310]


[[Page Unknown]]

[Federal Register: August 18, 1994]


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SECURITIES AND EXCHANGE COMMISSION
[Release No. 35-26104]

 

Filings Under the Public Utility Holding Company Act of 1935 
(``Act'')

August 12, 1994.
    Notice is hereby given that the following filing(s) has/have been 
made with the Commission pursuant to provisions of the Act and rules 
promulgated thereunder. All interested persons are referred to the 
application(s) and/or declaration(s) for complete statements of the 
proposed transaction(s) summarized below. The application(s) and/or 
declaration(s) and any amendments thereto is/are available for public 
inspection through the Commission's Office of Public Reference.
    Interested persons wishing to comment or request a hearing on the 
application(s) and/or declaration(s) should submit their views in 
writing by September 6, 1994, to the Secretary, Securities and Exchange 
Commission, Washington, D.C. 20549, and serve a copy on the relevant 
applicant(s) and/or declarant(s) at the address(es) specified below. 
Proof of service (by affidavit or, in case of an attorney at law, by 
certificate) should be filed with the request. Any request for hearing 
shall identify specifically the issues of fact or law that are 
disputed. A person who so requests will be notified of any hearing, if 
ordered, and will receive a copy of any notice or order issued in the 
matter. After said date, the application(s) Pand/or declaration(s), as 
filed or as amended, may be granted and/or permitted to become 
effective.

The Columbia Gas System, Inc. (70-7903)

    The Columbia Gas System, Inc. (``Columbia''), 20 Montchanin Road, 
Wilmington, Delaware 19807, a registered holding company, has filed a 
declaration under Sections 6(a) and 7 of the Act.\1\
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    \1\Columbia and its wholly owned subsidiary company, Columbia 
Gas Transmission Corporation, filed for protection with the 
Bankruptcy Court for the District Court of Delaware (``Court'') on 
July 31, 1991. The cases have been consolidated for procedural 
purposes and are jointly administered under the caption: The 
Columbia Gas System, Inc. and Columbia Gas Trans. Corp., No. 91-803.
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    By order dated September 20, 1991 (HCAR No. 25380), Columbia was 
authorized to enter into a secured revolving credit agreement 
(``Agreement'') to issue and sell its promissory notes in an aggregate 
principal amount of up to $275 million at any one time outstanding, 
prior to September 30, 1993, under a debtor in possession financing 
facility (``Credit Facility'').\2\ Subsequently, by order dated June 
11, 1993 (HCAR No. 25825), Columbia was authorized to amend the 
Agreement to reduce the overall commitment under the Credit Facility to 
$100 million, of which: (1) $100 million would be available for the 
making of loans; and (2) $50 million would be available for the 
issuance of letters of credit (``LOC'') in an aggregate face amount not 
to exceed $50 million, through December 31, 1994.\3\
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    \2\By order dated September 10, 1991, the Court issued an order 
authorizing the proposed financing.
    \3\By order dated May 11, 1993, the Court approved the 
amendments to the Credit Facility.
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    Because Columbia's current cash reserves are sufficient to meet 
projected requirements without the need for borrowing under the Credit 
Facility, it now proposes to amend the Agreement further to convert the 
Credit Facility solely to a LOC facility for the issuance of LOC in an 
aggregate face amount not to exceed $25 million (``Proposed 
Facility''). The Proposed Facility would permit the issuance of LOC by 
Chemical Bank (``Chemical'') at any time until December 31, 1995, or 
such later date as may be from time-to-time agreed to by Columbia and 
Chemical to extend the Proposed Facility until Columbia's Plan of 
Reorganization becomes effective. The Court must and is expected to 
approve the terms of the Proposed Facility.
    The fees to be charged under the Proposed Facility would include a 
LOC fee of 1% per annum of the face amount of each LOC, a commitment 
fee of \1/2\ of 1% of the unused portion of the commitment, and an 
amendment fee of \1/4\ of 1% of the commitment, payable at closing. 
Under the Proposed Facility, Chemical would provide the entire 
commitment and act as the sole issuing bank with respect to the LOC.

Indiana Michigan Power Company (70-8439)

    Indiana Michigan Power Company (``I&M''), One Summit Square, P.O. 
Box 60, Fort Wayne, Indiana 46801, an electric public-utility 
subsidiary company of American Electric Power Company, Inc., a 
registered holding company, has filed an application-declaration under 
Sections 9(a), 10 and 12(d) of the Act and Rule 44 thereunder in 
connection with a proposed sale of utility assets.
    I&M intends to lend through December 31, 1996 up to $15 million to 
Steel Dynamics, Inc. (``SDI''), an Indiana corporation, to assist SDI 
in the construction of a 345kv-34.5kv electric substation 
(``Substation''). The substation will be used to take I&M power for an 
SDI manufacturing plant in I&M's service territory and will be used 
solely to provide power for SDI's own needs. SDI has entered into a 
construction agreement (``Construction Agreement'') with an outside 
contractor for the construction of the substation. Under the terms of a 
Substation Facilities Agreement (``Facilities Agreement'') dated as of 
June 1st, 1994 with I&M, SDI has transferred its rights in the 
Construction Agreement to I&M, which will pay for the construction of 
the substation.
    Once the Commission has authorized I&M to advance funds to SDI and 
to sell the substation, I&M will transfer its rights in the 
Construction Agreement and title to the substation to SDI. In exchange, 
SDI will deliver a promissory note (``Note'') to I&M and will transfer 
a first priority security interest in the substation to secure its 
obligations to repay the funds spent by I&M under the Facilities 
Agreement.
    The principal amount of the Note will equal the construction costs 
of the substation, plus interest at 8% per annum on funds paid by I&M 
to the contractor before the substation is transferred to SDI, but will 
in no case exceed $15 million. The Note will bear a fixed rate of 
interest at 8% per annum and will be repayable in equal installments 
for fifteen years, commencing with the earlier of the date the 
substation goes into operation or December 31, 1996. However, in no 
case will any payments be due under the Note until a transmission line 
to serve the substation has been put into service.

    For the Commission, by the Division of Investment Management, 
pursuant to delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 94-20310 Filed 8-17-94; 8:45 am]
BILLING CODE 8010-01-M