HOUSTON, May 2 /PRNewswire-FirstCall/ -- Frontier Oil Corporation
(NYSE: FTO) announced today that the Delaware Chancery Court has rendered its
decision in the Company's lawsuit against Holly Corporation that arose out of
the failed merger between the two companies. Vice Chancellor John Noble ruled
that Frontier had not proved that Holly repudiated the Merger Agreement.
Instead, he ruled that Frontier had breached the Merger Agreement by declaring
that Holly had repudiated the contract and by filing the lawsuit. The Court
also ruled, however, that Holly had suffered no damages from Frontier's breach
and thus, Holly is only entitled to an award of nominal damages of $1.00.
The opinion also addresses Holly's position that the potential impact on
Frontier of the Beverly Hills litigation, which is described in Frontier's
public filings, would have excused Holly's performance under the Merger
Agreement. Vice Chancellor Noble ruled that Holly was unable to prove that the
Beverly Hills litigation would have, or would reasonably be expected to have,
a material adverse effect on Frontier.
Frontier's Chairman, President and CEO, James Gibbs, commented, "We are
very disappointed by the decision, and are currently evaluating our
alternatives with respect to an appeal. We continue to believe that the
combination of Frontier and Holly would have created a terrific company, so we
are disappointed that our shareholders were not able to benefit from our
efforts to retain the benefits of the merger."
Frontier operates a 110,000 barrel-per-day refinery located in El Dorado,
Kansas, and a 46,000 barrel-per-day refinery located in Cheyenne, Wyoming, and
markets its refined products principally along the eastern slope of the Rocky
Mountains and in other neighboring plains states. Information about the
Company may be found on its web site http://www.frontieroil.com.
This press release includes "forward-looking statements" as defined by the
Securities and Exchange Commission. Such statements are those concerning
strategic plans, expectations and objectives for future operations. All
statements, other than statements of historical facts, included in this press
release that address activities, events or developments that the Company
expects, believes or anticipates will or may occur in the future are forward-
looking statements. These statements are based on certain assumptions made by
the Company based on its experience and perception of historical trends,
current conditions, expected future developments and other factors it believes
are appropriate in the circumstances. Such statements are subject to a number
of assumptions, risks and uncertainties, many of which are beyond the control
of the Company. Investors are cautioned that any such statements are not
guarantees of future performance and that actual results or developments may
differ materially from those projected in the forward-looking statements.
SOURCE Frontier Oil Corporation
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