DAKOTA PLAINS HOLDINGS, INC. FILES (8-K) Disclosing Other Events
Item 8.01 Other Events.
On March 16, 2016, Dakota Plains Holdings, Inc. (the "Company") and certain of its affiliates (together with the Company, the "DAKP Parties") executed a Settlement Agreement (the "Settlement Agreement") with World Fuel Services Corporation ("WFS") and certain of its affiliates (together with WFS, the "WFS Parties") resolving several pending issues between the DAKP Parties and the WFS Parties. Pursuant to the Settlement Agreement, the Company has received approximately $1.9 million in funds previously held in escrow in connection with an Indemnification and Release Agreement dated December 5, 2014, by and between the DAKP Parties and the WFS Parties (the "Indemnification Agreement"), and the DAKP Parties have released certain claims against the WFS Parties related to historical railcar storage fees and rights to indemnification under the Indemnification Agreement. As part of the Settlement Agreement, the WFS Parties also have released their rights to indemnification under the Indemnification Agreement and have agreed to dismiss with prejudice a legal claim for conversion and replevin brought in
North Dakota
against one of the DAKP Parties and an officer of the Company in exchange for the DAKP Parties transferring to a third party 89,894 barrels of crude oil previously retained by an affiliate of the Company at its Pioneer Terminal.
While two lawsuits filed by certain DAKP Parties against certain WFS Parties in
Minnesota
state court related to (i) claims for breach of contract and unjust enrichment relating to unpaid fees and costs for oil crude transloading services and (ii) claims for fraud in the inducement, reckless misrepresentation, tortious interference with prospective economic advantage, breach of contract, unjust enrichment, and declaratory judgment relating to railcar sublease agreements remain outstanding, the DAKP Parties continue to discuss the potential settlement of these actions with the WFS Parties.
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Source: Equities.com News
(March 22, 2016 - 8:48 AM EDT)
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