Getty Realty Corp. (NYSE-GTY) (“Getty” or the “Company”) today announced it entered into a Stipulation relating to the Chapter 11 bankruptcy proceeding initiated by Getty Petroleum Marketing (“Marketing”). The Stipulation is between the Company, Marketing, and the Official Committee of Unsecured Creditors in Marketing’s bankruptcy proceedings. The Stipulation is subject to the approval of the Bankruptcy Court at a hearing that will be held on April 2, 2012. No assurances can be given that the Stipulation will be approved by the Bankruptcy Court.
The Company wants an orderly transition of control of the properties that were previously leased to Marketing and to reposition the portfolio as quickly and efficiently as possible to maximize cash flow from these assets. The Company expects that the Stipulation, if approved by the Court, will help achieve these objectives while limiting the costs associated with potential litigation.
Marketing has paid the Company $10.3 million of approximately $19.0 million in fixed rent due to the Company for the period December 5, 2012 through March 31, 2012 and Marketing is expected to make payment to the Company of another approximately $1.5 million on or before April 1, 2012. All unpaid amounts due from Marketing under the Master Lease for periods after filing of the bankruptcy (including real estate taxes, which are not being paid by Marketing but are being advanced by the Company) become due and payable on April 30, 2012.
Additional information and details on the Stipulation are provided in the Current Report on Form 8-K filed by the Company on March 8, 2012 with the Securities and Exchange Commission (the “Form 8-K”). It can be found on the Company’s website at www.gettyrealty.com under investor relations and the SEC link. The foregoing descriptions of the Stipulation are not complete and are subject to and qualified in their entirety by reference to the Stipulation. A copy of the Stipulation is filed as Exhibit 99.2 to the Form 8-K.2011 Fourth Quarter and Full Year Financial Results Conference Call : Getty Realty will release its financial results for the quarter and year ended December 31, 2011 after the market closes on Thursday, March 15, 2012.