Freeport-McMoRan Oil and Gas Royalty Trust Makes Announcement
HOUSTON--(BUSINESS WIRE)--Dec. 26, 2001--Freeport-McMoRan Oil and Gas Royalty Trust (OTCBB:FMOLS): At a Special Meeting of Unitholders held on Oct. 5, 2001, the Unitholders approved a shareholder proposal to amend the Trust Indenture instructing the Trustee to sell the royalty interest held by the Trust to Texas Standard Oil Company, a Texas corporation (TXS), and to delay any liquidating distribution of Trust assets, less amounts withheld by the Trustee for contingent liabilities of the Trust, until completion of an exchange offer by TXS or Dec. 31, 2001, whichever occurs first. On Oct. 11, 2001, in accordance with the shareholder proposal approved at the Special Meeting of Unitholders held on Oct. 5, 2001, the Trustee sold the royalty interest held by the Trust to TXS for $1,000 in cash.
The Trust's remaining assets are the proceeds from the sale to TXS and the expense reserve established by the Trustee to pay the Trust's ongoing administrative expenses. The combined amount of these assets was $54,008.49 on Dec. 21, 2001. The Trustee has been informed by TXS that TXS will not complete an exchange offer for the outstanding units of the Trust prior to Dec. 31, 2001. In order to provide the Unitholders with the opportunity to participate in the exchange offer with TXS, the Trustee will not terminate the Trust until completion of the exchange offer by TXS or depletion of the Trust's expense reserve, whichever occurs first.
The Trustee anticipates that the entire amount of the Trust's remaining assets will be needed to pay the costs to wind up the affairs of the Trust, including the additional administrative expenses the Trust will incur until the Trust is terminated upon completion of the exchange offer by TXS or depletion of the Trust's expense reserve, whichever occurs first. Therefore, the Trustee will withhold the remaining amount of the expense reserve to pay the expenses associated with the termination of the Trust and does not expect to make a liquidating distribution. |
