Newspaper article THE JOURNAL RECORD

Judge Reverses Judgment in Oklahoma Refining Suit

Newspaper article THE JOURNAL RECORD

Judge Reverses Judgment in Oklahoma Refining Suit

Article excerpt

Journal Record Staff Reporter A $51.6 million judgment against Continental Bank NA of Chicago arising from the sale of the Oklahoma Refining Co. in 1983 was reversed in retrial last week by an Oklahoma City judge. The ruling, in the U.S. District Court for the Western District of Oklahoma, stated that Ray Bell and his New Mexico-based Atex Group were not entitled to the previously awarded damages. Oklahoma Refining had filed for bankruptcy in 1984. Atex had contended that the bank would not let it purchase the refinery unless it assumed full liability for a $51.6 million loan. Continental Illinois National Bank & Trust Co. of Chicago, which later became Continental Bank, held 80 percent of the note, and the First National Bank & Trust Co. of Oklahoma City, which later became First Interstate Bank of Oklahoma NA, held the remaining 20 percent. The suit only involves Continental. The 10th U.S. Circuit Court of Appeals had thrown out fraud counts against Continental but ruled that it had violated Oklahoma securities law in connection with the sale of the refinery. The case was sent back to the Oklahoma court to determine the amount of damages to be awarded to Bell and Atex. Bell and Atex purchased a two-thirds interest in Oklahoma Refining from Oklahoma City-based An-Son Refining Co. in 1983 and assumed the full liability of the $51.6 million note. "The sale of stock from An-Son to Bell was unregistered and violated Oklahoma securities law," said D. …
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