Parallel Petroleum trims termination fee, settles pending lawsuits

By Lisa Kerner

Charlotte, N.C., Oct. 13 - Parallel Petroleum Corp. announced it amended its merger agreement with Apollo Global Management, LLC subsidiaries PLLL Holdings, LLC and PLLL Acquisition Co.

The amount of the termination fee payable by Parallel Petroleum was reduced to $4 million plus expenses up to $1 million, from $5.5 million, according to form 8-K filed with the Securities and Exchange Commission.

In addition, the period in which the termination fee would have to be paid was reduced to nine months, from 12 months.

Parallel Petroleum also settled pending lawsuits in the Chancery Court of Delaware, agreeing to make certain supplemental disclosures to its solicitation/recommendation statement on schedule 14D-9 in connection with the proposed merger.

As previously reported in September the Apollo subsidiaries agreed to acquire Parallel Petroleum and began a $3.15-per-share cash tender offer for the company's outstanding shares.

The tender offer, valued at approximately $483 million excluding fees and expenses, will end at midnight ET on Oct. 22 unless extended, Apollo said.

Apollo will complete a second-step merger to acquire any remaining shares once the offer ends.

Parallel Petroleum is a Midland, Texas-based independent energy company.

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