JERICHO, NY, January 11, 2012 - Getty Realty Corp. (NYSE-GTY)
(the "Company") announced that the United States Bankruptcy
Court (the "Court") in the bankruptcy case of Getty Petroleum
Marketing, Inc. ("Marketing"), the Company's largest tenant,
issued an order yesterday affirming the Company's right to
receive post-bankruptcy rent for December 2011 and January
2012 and rejecting an attempt by Marketing to "offset" the
rent for such months. The Court ordered Marketing to comply
with all of its post-bankruptcy obligations under the Master
Lease, including the obligations to pay fixed rent and real
estate taxes (the "Order"). The Order requires Marketing to
pay $3 million towards these obligations by January
17th and the remainder of the amounts due under
the Master Lease on account of unpaid post-bankruptcy
obligations, which includes more than $9 million of unpaid
fixed rent, not later than February 5,
2012.
David B. Driscoll, President and CEO of the Company
commented, "We welcome the decision of the Bankruptcy Court
requiring Marketing to comply with its post-bankruptcy
obligations under the Master Lease. The Company intends to
continue to protect its interests with respect to the Master
Lease and pursue all other rights and remedies available to
it as appropriate. We remain confident of the long-term value
in the portfolio subject to the Master Lease and optimistic
about the future of our Company."
The Company has previously disclosed that it had served
Marketing with a formal notice of termination of the Master
Lease as a result of Marketing's nonpayment of November 2011
rent. As of November 30, 2011 Marketing leased approximately
800 properties under the Master Lease and the monthly fixed
rent that was due to the Company under the Master Lease was
approximately $4.9 million. Under the Master Lease, Marketing
is responsible for the payment of taxes, maintenance, repair,
insurance, environmental and other operating expenses. The
Company believes that it is likely that Marketing has not
paid some or all of the real estate taxes due and owing under
the Master Lease in a timely manner.
As a result of the foregoing developments, it is likely that
the Company will be required to accrue and pay for some or
all of these unpaid real estate taxes. Also, as previously
disclosed, it is also likely that the Company will be
required to increase the deferred rent receivable reserve,
record additional impairment charges and accrue for
Marketing's environmental liabilities. In addition, the
Company may incur significant costs associated with
proceedings against Marketing and a repositioning of the
Master Lease portfolio. The Company has not determined the
amounts of any such costs or potential adjustments to its
financial statements. These developments could materially
adversely affect the Company's business, financial condition,
revenues, operating expenses, results of operations,
liquidity, ability to pay dividends or stock price. The
Company cannot provide any assurance regarding the ultimate
resolution of Marketing's bankruptcy.
For more information on the risks associated with the
Company's relationship with Marketing, see the disclosure
under the caption "Risk Factors" in the Company's Annual
Report on Form
10-K for the fiscal year ended December 31, 2010, the
Company's subsequent Quarterly Reports on Form 10-Q and as
updated by the Company's subsequent periodic reports filed
under the Securities Exchange Act of 1934, as amended and the
Company's other filings made with the Securities and Exchange
Commission.
Getty Realty Corp. is the largest publicly-traded real estate
investment trust in the United States specializing in
ownership, leasing and financing of retail motor fuel and
convenience store properties and petroleum distribution
terminals. The Company owns and leases approximately
1,155 properties nationwide.
Certain statements in this press release may constitute
"forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. When the
words "believes," "intends," "expects," "plans," "projects,"
"estimates" and similar expressions are used, they identify
forward-looking statements. Examples of these forward looking
statements include the Company's statements of intentions
regarding pursuit of its actions against Marketing. These
forward-looking statements are based on management's current
beliefs and assumptions and information currently available
to management and involve known and unknown risks,
uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by these forward-looking
statements. Information concerning factors that could cause
the Company's actual results to differ materially from these
forward-looking statements can be found in our periodic
reports filed with the Securities and Exchange Commission. We
undertake no obligation to publicly release revisions to
these forward-looking statements to reflect future events or
circumstances or reflect the occurrence of unanticipated
events.
Thomas J. Stirnweis
(516) 478-5403
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Getty Realty Corp. Announces that Getty Petroleum Marketing Has Been Ordered to Meet Its Post-Bankruptcy Lease Obligations |