Getty Realty Corp. (NYSE: GTY) (“Getty” or the “Company”) announced today that the parties in the adversary proceeding brought in the United States Bankruptcy Court, Southern District of New York, by the Getty Petroleum Marketing Inc. Trust (the “GPMI Liquidating Trust”), as Plaintiff, against Lukoil Americas Corporation, Lukoil North America LLC, OAO Lukoil, and certain directors and officers of Getty Petroleum Marketing Inc. (“GPMI”), as Defendants, based on claims, among others, of fraudulent conveyance and breach of the fiduciary duties (the “Lukoil Lawsuit”), have agreed upon a settlement. The terms of the settlement include a release of the Defendants from the claims alleged by the Plaintiff in its complaint and a collective payment by or on behalf of the Defendants to the Plaintiff of $93 million.
As previously disclosed by the Company, pursuant to a litigation funding agreement between the Company and the GPMI Liquidating Trust (the “Litigation Funding Agreement”), the Company has been funding the Plaintiff's prosecution costs for the Lukoil Lawsuit, as well as certain expenses incurred by the GPMI Liquidating Trust in connection with the wind-down of its estate. The Litigation Funding Agreement provides that the Company is entitled to receive proceeds from the successful prosecution of the Lukoil Lawsuit (including by way of settlement) in an amount equal to the sum of (i) all funds advanced for wind-down costs and expert witness and consultant fees plus interest on such advances; (ii) the greater of all funds advanced for legal fees and expenses relating to the prosecution of the litigation plus interest on such advances or 24% of the gross proceeds from the settlement; and (iii) reimbursement of certain additional legal fees incurred by Getty in connection with the Litigation Funding Agreement. In addition to its claims under the Litigation Funding Agreement, the Company also has an unrecovered balance on its priority administrative claim plus accrued interest thereon and a significant unsecured claim for which it will receive its pro rata share of any remaining proceeds of the settlement that are distributed to unsecured creditors.
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