TEL OFFSHORE TRUST (OTCMKTS:TELOZ) Files An 8-K Other Events
Item 8.01 Other Events.
Settlement of Probate Proceeding and Termination of the
Trust
As previously disclosed in Current Reports on Form8-K previously
filed by the TEL Offshore Trust (the Trust) with the Securities
and Exchange Commission (SEC), The Bank of New York Mellon Trust
Company, N.A. (the Corporate Trustee), Glenn M. Karisch, the
attorney ad litem (the Ad Litem) appointed by the Probate Court
of Travis County, Texas (the Court) in the previously announced
probate proceeding (the Probate Proceeding), RNR Production Land
and Cattle Co.,Inc. (RNR) and Albert and Joyce Speisman (the
Speismans, and together with RNR and the Ad Litem, the
Plaintiffs) entered into a Settlement Agreement (the Corporate
Trustee Settlement Agreement) with respect to all claims
previously asserted against the Corporate Trustee.
At the hearing held on May15, 2017, the Court approved, among
other motions, the Corporate Trustee Settlement Agreement, the
Final Judgment as to Corporate Trustee and the Final Judgment
Modifying and Terminating the Trust. The time period for appeal
of the Final Judgment as to Corporate Trustee and the Final
Judgment Modifying and Terminating the Trust expired on June14,
2017 with no appeals having been filed. In accordance with the
terms of the Corporate Trustee Settlement Agreement and the Final
Judgment Modifying and Terminating the Trust, the Corporate
Trustee paid the sum of $4 million into the TEL Offshore Trust
Qualified Settlement Fund (the QSF) on June21, 2017 and
transferred to the QSF all funds remaining in the Trustss
segregated account on June21, 2017.
In addition and in accordance with the terms of the Corporate
Trustee Settlement Agreement and the Final Judgment Modifying and
Terminating the Trust:
the Trust shall terminate as of 5:00 p.m.Eastern Daylight Saving
Time on June30, 2017 (the Record Date and Time) and all of the
units of beneficial interest in the Trust (Units) shall cease to
exist;
the Trusts transfer books shall be closed and any trading of the
Units shall not be permitted after the Record Date and Time; and
as of the Record Date and Time, the rights of each Unit holder
shall be limited to its rights with respect to the QSF.
The foregoing descriptions of the Corporate Trustee Settlement
Agreement and the Final Judgment Modifying and Terminating the
Trust are not complete and are qualified in their entirety by
reference to the full text thereof, copies of which were filed as
Exhibits 99.1 and 99.2, respectively, to the Current Report on
Form8-K filed by the Trust with the SEC on May17, 2017.
Administration of QSF
to the Corporate Trustee Settlement Agreement and the Final
Judgment Modifying and Terminating the Trust, the Corporate
Trustee and individual trustees of the Trust (collectively, the
Trustees) have no involvement or duties with the administration
of the QSF or the distribution of funds from the QSF. The
Trustees have no liability to any current or former owners of
Units regarding the administration of the QSF or the distribution
of funds from the QSF, whatsoever. The QSF shall be administered
by Karl Johnson, the Administrator/Trustee of the QSF previously
appointed by the Court. Unit holders having questions regarding
the QSF and the claims procedures under the QSF should contact
Karl Johnson. Attached to this Current Report on Form8-K as
Exhibit99.1 is a Notice to TEL Offshore Unitholders provided by
the Trustee/Administrator of the QSF.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits
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ExhibitNumber |
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Description |
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99.1 |
Notice to TEL Offshore Trust Unitholders |
TEL OFFSHORE TRUST ExhibitEX-99.1 2 a17-15912_1ex99d1.htm EX-99.1 Exhibit 99.1 NOTICE TO TEL OFFSHORE TRUST UNIT HOLDERS By Court Order dated May 15,…To view the full exhibit click here About TEL OFFSHORE TRUST (OTCMKTS:TELOZ)
TEL Offshore Trust (the Trust) owns approximately 99.99% interest in the TEL Offshore Trust Partnership (Partnership). Chevron U.S.A., Inc. (Chevron) owns the remaining .01% interest in the Partnership. The Trust’s primary source of liquidity and capital is the royalty income received from its share of the net proceeds from the royalty properties. The Trust’s reserve report notes that there were approximately five productive royalty properties, which consist of Ship Shoal 182/183, South Timbalier 36, South Timbalier 37, Eugene Island 339 and Eugene Island 342.