Newspaper article THE JOURNAL RECORD

Beard Oil Creditors to Get Bulk of Assets

Newspaper article THE JOURNAL RECORD

Beard Oil Creditors to Get Bulk of Assets

Article excerpt

By Ronda Fears

Journal Record Staff Reporter

All oil and gas assets of Beard Oil Co. _ the bulk of the Oklahoma City company _ would be turned over to creditors to settle an $85 million debt, under an agreement disclosed Wednesday.

New York Life Insurance Co. and John Hancock Mutual Life Insurance Co. would also get 25 percent ownership of Beard's remaining assets, which fall under Beard Investment Co., plus preferred stock that in seven years would be convertible to another 15 percent interest.

Beard's non-oil and gas operations include a carbon dioxide and dry ice subsidiary and interests in real estate development, iodine production and alternative fuels research. Those operations showed a $4.9 million operating loss last year.

Overall, Beard posted a $17.5 million loss for 1991, up from a $13.3 million loss in 1990. For 1989, the company showed a $74,000 profit. For the first nine months of 1992, Beard reported a net loss of $17 million.

This would be the second major restructuring of the Beard company in the past five years.

In 1988, U.S. Pollution Control Inc. was sold to Union Pacific Resources Corp. after a hostile takeover attempt that began in 1987. The $58 million deal netted the company $8.2 million, according to financial records.

The agreement with New York Life and John Hancock is not final, though, and ultimately will require stockholder approval. A standstill agreement has been extended to Feb. 28 to iron out a settlement. But, the creditors have required management owners of 42 percent of Beard stock to consent to the agreement by next Tuesday.

Chairman W.M. "Bill" Beard controls 31.2 percent of company stock, according to financial records filed with the Securities and Exchange Commission. The Beard family founded the company in 1921.

President Herb Mee Jr. controls 4. …

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