DOME <DMP> PLAN MAY FORCE SALE OF ENCOR STAKE
Dome Petroleum Ltd's proposal to
restructure debt of more than 6.10 billion Canadian dlrs
includes provisions that may force the company to sell its 42
pct stake in <Encor Energy Corp Inc>, Dome said in a U.S.
Securities and Exchange Commission filing.
    Dome said in the filing that its debt plan proposes making
payments under a five year income debenture to the lender whose
debt is secured by Dome's Encor shares.
    After the five years are up, "under certain circumstances
the shares of Encor may be required to be disposed," the company
said.
    Dome has pledged its 42.5 mln Encor shares as security for
part of its debt to <Canadian Imperial Bank of Commerce>,
estimated last year at 947 mln dlrs.
    Analysts have said Commerce Bank was pressing Dome to sell
the stock to pay down its debt.
    Dome's Encor shares had a market value of 313 mln dlrs on
March 17, 1987, the company's filing said.
    As previously reported, Dome is seeking approval in
principle for the debt restructuring plan. Dome said in the
filing it proposed lenders sign a letter of understanding in
early April, with implementation to be effective July 1, 1987.
    Dome Petroleum reiterated in the SEC filing that its
existence as a going concern is dependent on continuing the
interim debt plan, due to expire on June 30, and winning
agreement for its proposed restructuring plan.
    "The company believes that the negotiation and
implementation of the proposed debt restructuring plan is
realistic and achievable," Dome said.
    "However, the final outcome of the negotiations cannot be
predicted at this time," it said.
 Reuter
