Getty, Lukoil Reach Settlement in Bankruptcy Trial
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. According to a report by Reuters, the premise of Guiliano's lawsuit was that the Russian oil company stripped GPMI of its best gas stations.
Jericho, N.Y.-based Getty Realty Corp., which formerly leased 799 gas stations and convenience stores to GPMI, confirmed the $93 million settlement last night. It stands to gain from the settlement, considering the real estate investment trust is one of GPMI's creditors.
However, Getty Realty noted that the deal still needs to be approved by Judge Shelley Chapman of the U.S. Bankruptcy Court, Southern District of New York, which is located in New York City. A hearing to consider the settlement is set for July 29.
If Chapman approves the deal, GPMI's creditors would receive $32 million of the settlement immediately under a Litigation Funding Agreement, Getty Realty said in a news release.
Lukoil had no immediate comment when contacted by Reuters. Meanwhile, Andrew Goldman, an attorney for Giuliano, told the news outlet that the trustee is "obviously quite supportive of the settlement."