TEXSCAN TO FILE REORGANIZATION PLAN
<Texcan Corp> said it reached an
agreement in principle with its major creditors on a
reorganization plan to lift it out of bankruptcy.
    The plan proposes Texcan to pay its bank debt partially
through a 15 mln dlr secured obligation, to pay its general
trade debt of two mln dlrs, and to satisfy subordinate
debenture holders through issuance of 45 pct of the stock of
the reorganized corporation, it said.
    Texcan said its bank debt will be paid to United Bancorp of
Arizona's <UBAZ> United Bank of Arizona and Security Pacific's
Corp's <SPC> Security Pacific Bank.
    Subordinated bondholders also will have the right to
subscribe to buy an additional 40 pct of the common stock of
the reorganized corporation for three mln dlrs under an
arrangement to be announced in a few weeks, Texscan said.
    Total debt claims have been filed in the Chapter 11
proceeding of 110 mln dlrs, it said.
    Texscan said its existing stock will be extinguished under
the proposed reorganization plan. The company said it filed for
reorganization Nov 22, 1985.
 Reuter
