OCR Text |
Show SEC to Hear Power Proposal on Monday The proposal of the Southwest Utah Power Federation, of which Cedar City proposes to become a member, to purchase the holdings hold-ings of the Southern Utah Pow. er company, will be heard before the Security Exchange Commission Commis-sion on Monday, March 6, according accord-ing to Federation officials. A sales agreement for the purchase pur-chase of the distribution system of the power company, was sign-ed sign-ed by Cedar City officials at the last meeting of the City Council, Coun-cil, the final step needed before be-fore the plan could be submitted to the Security Exchange Commission Com-mission for approval. After SEC approval is received the proposal will then be sub- mltf nA tViA Cr i fsf Itc an. UlillLU IV IIIC V- W K A L 4V1 i j Mr proval. Following this step, if successful, the bid will be submitted sub-mitted to the bondholders, for their answer as to whether or not they will accept $550,500 offered of-fered by the Federation and the REA for purchase of the company holdings. A majority of the bondholders 1 - . - I .1 . 1 J . nave siaieu inai iney wuuiu noi sell at the price offered, but no official offer has been made, and cannot be made before the program clears the court and the SEC. A suit has been filed against Cedar City, questioning the city's rie-ht to become a member of the Federation, to use public funds to purchase holdings in the com-1 pany or federation, and a number of other Issues, in the District Court. Until this suit is heard and disposed of it is doubtful if the SEC will make a decision on the Federation's proposal. However, How-ever, all evidence will be heard by the commission this week, and the final decision probably held in abeyance until a settlement of the suit is reached. |