TRI TEXAS ANNOUNCES LITIGATION PROCEEDINGS
TRI TEXAS ANNOUNCES LITIGATION PROCEEDINGS DALLAS, Jan. 6 /PRNewswire/ -- Tri Texas, Inc. (NASDAQ Bulletin
Board: TTEX) today announced that two separate litigation proceedings have recently been initiated in connection with the various agreements previously entered into with certain of the former shareholders of the Home-Stake Oil & Gas Company (HSOG) and The Home-Stake Royalty Corporation (HSRC). One of such litigation proceedings, which is in the form of a request for declaratory judgment that such agreements are still in force, was filed by Tri Texas in Dallas. The former shareholders of HSOG and HSRC also initiated litigation proceedings, in the form of an effort to rescind the aforementioned agreements, in Tulsa, Okla.
In April 1991, Tri Texas acquired approximately 20,330 shares of HSOG and 12,313 shares of HSRC, in addition to other consideration, from certain of the former shareholders of such entities in exchange for shares of common stock of Tri Texas. Both of the foregoing proceedings relate to the agreements involved in the said exchange of stock. While Tri Texas is optimistic as to the ultimate outcome of such litigation, there is no certainty that such will be the case nor is there any certainty as to the time period to be involved in connection with these matters. If Tri Texas is not successful in these litigation proceedings, the results could have a material adverse effect upon Tri Texas and its financial condition. Tri Texas anticipates that the Dallas proceedings and the Tulsa proceedings may be ultimately consolidated into one case. However, again there is no certainty that this will occur. Since April 1991, Tri Texas has been endeavoring to obtain control of HSOG and HSRC. Commencement of the aforesaid legal proceedings will undoubtedly make it more difficult for Tri Texas to succeed in these endeavors. There is no certainty that Tri Texas will be successful in obtaining control of HSOG and HSRC even if it prevails in such litigation. In June, 1991, HSOG and HSRC acquired certain HSOG and HSRC shares which were subject to options held by Tri Texas. Since HSOG and HSRC contend that these options were breached and are no longer valid, HSOG and HSRC failed to sell, on or before Dec. 31, 1991, the shares of HSOG and HSRC owned by such entities and which were subject to options to purchase by Tri Texas. Litigation in addition to the proceedings discussed hereinabove was previously commenced by Tri Texas in an effort to have a judicial determination that such options were in fact valid and in force; proceedings are being actively litigated at this time. The remaining persons and individuals who had previously granted options to Tri Texas indicated that they were prepared to allow Tri Texas to purchase from them the shares of HSOG and HSRC pursuant to the option involved. Tri Texas did not purchase any of these shares on or before Dec. 31, 1991, (the expiration date of such options under the terms of the written agreements involved) but contend that all of the options involved have been extended by the failure of HSOG and HSRC to sell shares of HSOG and HSRC which were subject to the options involved. There is no certainty that Tri Texas will prevail in its litigation with HSOG and HSRC or that the remaining options continue in force and effect. If Tri Texas is not successful in such litigation and if the remaining options are not still in force and effect, the likelihood of Tri Texas acquiring control of HSOG and HSRC will be significantly diminished. The options which Tri Texas holds with respect to HSOG and HSRC stock are actually owned by subsidiaries of Tri Texas. Tri Texas continues to be involved in the quick lube oil change business operating or managing six Texaco Express Lube facilities in the Dallas/Fort Worth (Texas) area. -0- 1/6/92 /CONTACT: Charles S. Christopher, chairman of Tri Texas, 214-931-7694/ (TTEX) CO: Tri Texas, Inc. ST: Texas, Oklahoma IN: OIL SU: SM -- NY079 -- 7078 01/06/92 17:21 EST
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|Date:||Jan 6, 1992|
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