Nycal announces final regulations are published for the Gasquet Mountain Area; settlement with Gulf USA Corp.WASHINGTON--(BUSINESS WIRE)--May 20, 1996--Nycal Corp. announced that the Department of Agriculture published final regulations governing mining within the Smith River National Recreation Area Smith River National Recreation Area is located northwestern California, United States. The Smith River National Recreation Area is in Six Rivers National Forest and is managed by the U.S. Forest Service, an agency of the U.S. Department of Agriculture. ("SRNRA"). The final regulations were published on April 3, 1996, and can be found in Volume 61, No. 65 of the Federal Register, at page 14621. Congress passed the SRNRA Act in November 1990 and, as part of the Act, required the Department of Agriculture to publish regulations which prescribe the conditions under which holders of "valid existing rights" can mine within the SRNRA. Despite regular prodding by Nycal seeking the publication of the regulations, the Department of Agriculture failed to publish them, Nycal decided in November 1994 to file proceedings against the Secretary of Agriculture to compel him to act in accordance with the mandate contained in the Act. The company believes that it is in response to this lawsuit that the regulations have now been published. Following review of these regulations by its counsel, Nycal has decided to object to some of the provisions of the regulations and has converted the present lawsuit into a formal challenge. The provisions the company has decided to challenge include those dealing with the length of approval for mining in the SRNRA, as well as the power of the U.S. Forest Service to determine valid existing rights. The company expects this legal challenge to be resolved in approximately six months. Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. with Gulf USA Corp. and with Inter-Allianz Bank Zurich (IBZ IBZ Ibiza, Spain - Ibiza (Airport Code) ) Nycal also announced that it has entered into a settlement with the Litigation Trustees of Gulf USA Corp. and Pintlar Corp. (the "Trustees"), which settlement is due to be submitted for approval to the Federal Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. of the District of Idaho in early June 1996. The settlement agreement provides that the Trustees dismiss all the claims against Nycal in the adversary proceeding Any action, hearing, investigation, inquest, or inquiry brought by one party against another in which the party seeking relief has given legal notice to and provided the other party with an opportunity to contest the claims that have been made against him or her. before that court entitled Goodson et al. v. Rowland et al. and assign certain legal claims to Nycal that the Trustees brought against Interallianz Bank AG and its subsidiaries in the same action. In consideration for this assignment, Nycal has agreed to pay $1 million to the Trustees and to prosecute the assigned claims against IBZ at its own cost. Out of the proceeds of future judgment or settlement with IBZ, the Trustees will be paid the first $1 million, the company the second $1 million, and the remainder to be divided 2/3 to Gulf, 1/3 to Nycal. The assigned claims include those for fraudulent conveyance A transfer of property that is made to swindle, hinder, or delay a creditor, or to put such property beyond his or her reach. For example, a man transfers his bank account to a relative by putting the account in the relative's name. and other claims under the Bankruptcy Code Bankruptcy Code may refer to:
Nycal is already litigating with IBZ in the U.S. District Court of the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of in relation to a loan Nycal took from IBZ in financing its purchase of Gulf USA Corp. IBZ has applied for summary judgment and Nycal has filed its response to IBZ's motion for summary judgment motion for summary judgment n. a written request for a judgment in the moving party's favor before a lawsuit goes to trial and based on recorded (testimony outside court) affidavits (or declarations under penalty of perjury), depositions, admissions of fact, answers . Nycal continues to believe it has valid defenses to IBZ's claims. Nycal feels confident that following approval of the assignment of the claims to Nycal by the Federal Bankruptcy Court, it will be in a position to bring about a more rapid and successful conclusion to this litigation. Hydrotechnology The company is continuing to pursue testing, preliminary research and marketing of hydroimpact technology through its Hydro Technology Ltd. subsidiary. Hydroimpact technology is applied to mature oil wells in order to increase oil production. Outstanding Annual Reports Finally, Nycal reports that it, as yet, cannot estimate when it will complete its annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for fiscal years 1994 and 1995. Nycal has decided to await the resolution of its challenge to the final regulations governing mining in the SRNRA before obtaining an updated feasibility report relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc mining in Gasquet Mountain. This feasibility report is necessary to continue mutually informed discussions with its auditors regarding the financial reporting of long-lived assets such as the Gasquet mining claims, under Financial Accounting Standard 121. CONTACT: Nycal, Washington Jamie Klein, 202/944-4424 |
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