ZAPATA <ZOS> WON'T PAY INTEREST ON DEBENTURES
Zapata Corp said it does not intend to
pay the interest due March 15 on its 10-1/4 pct subordinated
debentures due 1997 or the interest due May One on its 10-7/8
pct subordinated debentures due 2001.
    Zapata said the results of continuing discussions with its
bank lenders and the company's future financial position will
determine Zapata's ability to meet its obligations to holders
of the subordinated debentures.
    The company said deferrals of payment obligations and
covenant waivers provided by all of its bank lenders, which
were scheduled to expire February 28, have been extended
through April 30.
    Zapata stopped paying interest on the debentures in April
1986.
 Reuter
