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Hugoton Royalty Trust Message Board

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  • ch4_tycoon ch4_tycoon Jun 8, 2012 9:51 AM Flag

    Lawsuit

    So, if shareholders end up in a long term legal spat with the Trust and XOM or XTO....what will that do to the detriment of any future earnings/distributions from the Trust?

    Is there clause that says that legal defense would NOT come out of revenues to be distributed to shareholders?

    This thing is a MAJOR can of worms!!!

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    • "Is there clause that says that legal defense would NOT come out of revenues to be distributed to shareholders?"

      It would have to come out of future distributions. As a royalty land trust. HGT has no real employees (lawyers). They have some bankers that balance books, pay themselves, and send the rest out as distribution payments. There is no reserve cash fund, sellable assets, that I am aware of that a corporation would have to plan and prepare for a legal battle.

 
HGT
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