Hugoton Royalty Trust Declares No July Cash Distribution
The expense reserve used to pay administrative expenses in the absence of current month distributions was depleted in October 2020.
- The expense reserve used to pay administrative expenses in the absence of current month distributions was depleted in October 2020.
- As a result, Simmons Bank, the Trustee, is currently paying the expenses for the Trust, subject to its rights to be indemnified and reimbursed pursuant to the terms of the Trust indenture.
- However, there is nothing in the Trust indenture that requires Simmons Bank to pay the expenses for the Trust.
- The Trust and XTO Energy conducted the interim hearing on the claims related to the Chieftain settlement on October 12-13, 2020.