National Energy Group acknowledges lawsuit, adjourns meeting

By Lisa Kerner

Charlotte, N.C., Feb. 7 - National Energy Group, Inc. said it is aware of a stockholder derivative and class action lawsuit filed by Andrew T. Berger in the Delaware Court of Chancery against the company and some current or former directors or officers of the company.

The lawsuit alleges a breach of fiduciary duties in connection with National Energy's November 21, 2006 sale of its non-controlling 50% membership interest in NEG Holding LLC to NEG Oil & Gas, LLC.

Listed in the lawsuit in addition to National Energy are Icahn Enterprises LP, Robert G. Alexander, Jon F. Weber, Robert J. Mitchell, Jack G. Wasserman and Robert H. Kite.

National Energy adjourned its special meeting on Feb. 7 to be reconvened on Feb. 28. Shareholders of record as of Dec. 27 will be asked to approve the company's complete dissolution and liquidation.

It was previously reported that the board made its decision to liquidate the company after considering all strategic options available. Once the company is dissolved, the board will declare a cash distribution to its shareholders.

National Energy said in a prior release that as of Nov. 21, it had also paid its debt obligations in full, terminated its management agreements with NEG Operating LLC, National Onshore LP and National Offshore LP and terminated the majority of its employees.

Since the redemption of the company's former interest in NEG Holding, Dallas-based National Energy has had no business operations and its principal assets consist of cash and short-term investment balances totaling $47.8 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.