Bankruptcy Court OKs Getty, Lukoil Settlement

NEW YORK -- A settlement whereby Lukoil Americas Corp. will pay $93 million to Getty Petroleum Marketing Inc. (GPMI) was approved by a U.S. bankruptcy judge.

According to Reuters, Judge Shelley Chapman approved the settlement during a U.S. Bankruptcy Court, Southern District of New York hearing yesterday. GPMI declared bankruptcy in December 2011 and subsequently appointed trustee Alfred Giuliano to liquidate its assets and pay back creditors. One way he determined to do so was by suing GPMI's former parent company, Lukoil.

Guiliano's lawsuit stated that the Russian oil company stripped GPMI of its best gas stations. GPMI formerly leased 799 gas stations and convenience stores from Getty Realty Corp.

As CSNews Online reported, GPMI and Lukoil reached the settlement agreement on July 18. Since GPMI is a bankrupt company, its creditors will receive the settlement funds. According to Getty Realty, $32 million of the settlement will be paid out immediately under a Litigation Funding Agreement.

As one of GPMI's creditors, Getty Realty stands to benefit financially from the settlement.

This ad will auto-close in 10 seconds