Shareholders approve dissolution of National Energy Group

By Lisa Kerner

Charlotte, N.C., March 14 - National Energy Group, Inc. shareholders approved the plan to dissolve and liquidate the company at a special meeting on Friday.

Shareholders of record as of March 25 at 5 p.m. ET will be entitled to receive liquidation distributions under the plan, according to a company news release.

National Energy plans to submit a certification and notice of termination of registration on form 15 to the Securities and Exchange Commission on or about March 26 to delist its shares.

On Feb. 28, National Energy reconvened its special meeting to give shareholders more time to review information related to a stockholder derivative and class action lawsuit brought by Andrew T. Berger.

Berger filed the lawsuit in the Delaware Court of Chancery against the company and some of its current or former directors or officers alleging a breach of fiduciary duties in connection with National Energy's Nov. 21, 2006 sale of its non-controlling 50% membership interest in NEG Holding LLC to NEG Oil & Gas, LLC.

According to a Nov. 21 company news release, National Energy has 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.

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