WHITE PLAINS, N.Y. — Texaco Inc.'s unsecured creditors proposed Friday that Pennzoil Co. accept less than half the $10.3 billion it won in a landmark judgment against the oil giant, even if Texaco loses a Supreme Court appeal.
The creditors, who fear the original judgment would wreck the company and imperil their chances of getting repaid, also proposed that Texaco give Pennzoil an unspecified amount of money even if it wins the appeal. The creditors earlier this month sought permission to affix both a floor and a ceiling on the amount Texaco must pay Pennzoil.
Last week, Pennzoil proposed that Texaco pay it a non-refundable $1.5-billion sum, and in turn, Pennzoil would agree to a $5-billion cap on Texaco's total liability. Texaco said that plan was "totally out of the question," but both companies reportedly are attempting to negotiate an out-of-court settlement.
The creditors' proposal was filed by the general creditors committee in U.S. Bankruptcy Court in White Plains, where the country's third-largest oil concern is based.