Triangle USA Petroleum filed with the U.S. Bankruptcy Court a motion to approve a compromise and settlement with Tidal Energy Marketing (U.S.).
The motion explains, “Pursuant to the Settlement Agreement, the parties have agreed that Tidal will release the Suspense Funds to TUSA and TUSA will in turn indemnify Tidal from further liability relating to the same. To the extent that the claims of the mineral interest owners are determined to be valid, TUSA will be liable directly to such mineral interest owners.”
In addition, “But in the unlikely event that the mineral interest owners collect from Tidal instead of from TUSA, TUSA will satisfy this liability via its indemnity obligations to Tidal. The Settlement Agreement thus addresses Tidal’s concerns, and, at the same time, prevents TUSA from incurring additional liability with respect to the purported mineral interests. The Settlement Agreement also avoids the time and uncertainty of resolving the interpleader dispute through litigation and represents a net benefit to the Debtors’ estate.” The Court scheduled a January 13, 2017 hearing to consider the compromise motion, with objections due by December 27, 2016.
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