TEXACO <QTX> SUPPOPTS BOND AND LIEN RULES STUDY
Texaco Inc <QTX> said it will
support the efforts of a Texas legislature joint committee,
which will study and propose remedies for problems with the
procedural bond and lien rules of the Texas judiciary.
    The rules, which require a defendant in a civil case to
post a bond in the full amount of the judgment plus interest in
order to exercise its right to appeal the judgment, directly
led to Texaco to file for protection under Chapter 11 of the
Federal Bankruptcy Code, Texaco said.
   
    Texaco said it was unfortunate that it took its bankruptcy
to illustrate the need for reform.
    Texaco also said Pennzoil Co's <PZL> obstructive tactics
prevented similar legislation earlier in the legislature's
session, which would have provided the trial judge in Texas
flexibility to set the bond at a level appropriate to secure
the interest of the judgment creditor based on the
circumstances of the case.
    Under current law, Texaco said it would have had to post
the full 11.1 billion dlrs to exercise its right to appeal the
judgment.
 Reuter
