Holmes a Court Won’t Serve on Texaco Panel

The trustee in Texaco Inc.’s bankruptcy case has named an equity-holders committee without Australian financier Robert Holmes a Court, who apparently declined a seat on the panel despite his 9.6% stake in Texaco, lawyers said Thursday.

Observers viewed Holmes a Court’s absence from the nine-member committee as a sign the Australian investor wants to be able to act in his own interests without being obligated to all Texaco shareholders.

“I think it would inhibit his freedom,” said Fred Isquith, an attorney who had sought the committee to ensure client shareholders’ rights were not overlooked.

Holmes a Court’s growing stake in Texaco has fueled speculation on Wall Street over whether he is buying exclusively for investment, as he claims, or for purposes of a takeover or restructuring of the nation’s third-largest oil company.

He also is seen as possibly putting pressure on Texaco to settle the $10.3-billion battle with Pennzoil Co. over Getty Oil Co. ownership that forced Texaco to seek Chapter 11 bankruptcy protection on April 12.

Holmes a Court and his spokesmen were unavailable for comment Thursday. On Tuesday, the Australian financier asked federal regulators for permission to raise his holdings in Texaco to above 10%.

The equity-holders committee, which will have a role in Texaco’s bankruptcy proceedings along with two creditors committees, was named by U.S. Trustee Harry Jones of the Justice Department.

Jones was unavailable for comment, but lawyers involved in the case confirmed that the panel’s membership excluded Holmes a Court. The Australian had been expected to be invited to the panel, but a published report said he declined a seat.

The committee includes John Morrison of Middletown, N.Y.; Robert Norris of Chicago; Lindner Fund Inc., a mutual fund in St. Louis; Dart Container Corp. of Sarasota, Fla.; John Browne of New York; Joseph Iny of Deal, N.J.; Acacia Mutual Life Insurance Co. of Washington; The Upham Co. of Bradenton, Fla., and Henry Campbell of Lampasas, Tex.

Meanwhile, in bankruptcy court, Texaco filed financial results for May of the operations of the parent company and two subsidiaries that filed for Chapter 11 protection under the federal bankruptcy code.

The results indicated that the parent company had $8.1 million in net income for the May 1-31 period, down from $23 million in the April 12-30 period.

There was no immediate explanation from Texaco.

Texaco stock was down $1.50 to $45.75 a share at mid-afternoon on the New York Stock Exchange. Pennzoil stock was behind $2.50 to $80.25 a share.