Getty Petroleum creditors allege 'vote manipulation' at plan hearing

By Sahara Marte

New York, Aug. 16 - Getty Petroleum Marketing Inc.'s creditors alleged "bad faith" and "vote manipulation" during a hearing Thursday in the U.S. Bankruptcy Court for the Southern District of New York to consider confirmation of the company's plan of liquidation.

They claimed the voting agent failed to fill priority claims and the classification of voters was inappropriate.

"It made sense to separately classify them," replied Getty's attorney, Andrew Goldman, partner at Wilmer Cutler Pickering Hale and Dorr LLP. "We didn't think there was anything problematic about it."

"You have creditors voting for ulterior motives," replied judge Shelley Chapman. "A couple of claims for a couple thousands have become the pivotal point in the case for millions."

The company and its creditors also discussed a possible fee arrangement that did not prove convincing to the court.

Getty planned to process payments under contingency rates that would be about 25%. The creditors agreed to pay lawyer fees under the hourly basis and receive their payments with contingency rates as well.

Judge Chapman suggested forming a payment plan that was more secure.

"We don't have the certainty we had before," she added. "It needs secure funding with litigation."

There was no ruling on the request for confirmation of the plan by press time on Thursday.

Getty Petroleum, an East Meadow, N.Y., distributor of motor and heating fuels, filed for bankruptcy on Dec. 5, 2011. Its Chapter 11 case number is 11-15606.

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