This excerpt taken from the WEN 10-K filed Mar 1, 2007.
One of our subsidiaries remains contingently liable with respect to certain obligations relating to a business that we have sold.
In July 1999, we sold 41.7% of our then remaining 42.7% interest in National Propane Partners, L.P. and a sub-partnership, National Propane, L.P. to Columbia Energy Group, and retained less than a 1% special limited partner interest in AmeriGas Eagle Propane, L.P. (formerly known as National Propane, L.P. and as Columbia Propane, L.P.). As part of the transaction, our subsidiary, National Propane Corporation, agreed that while it remains a special limited partner of AmeriGas, it would indemnify the owner of AmeriGas for any payments the owner makes under certain debt of AmeriGas (aggregating approximately $138.0 million as of December 31, 2006), if AmeriGas is unable to repay or refinance such debt, but only after recourse to the assets of AmeriGas. Either National Propane Corporation or AmeriGas Propane, L.P., the owner of AmeriGas, may require AmeriGas to repurchase the special limited partner interest. However, we believe it is unlikely that either party would require repurchase prior to 2009 as either AmeriGas Propane, L.P. would owe us tax indemnification payments or we would accelerate payment of deferred taxes, which amount to approximately $36.0 million as of December 31, 2006, associated with our sale of the propane business.
Although we believe that it is unlikely that we will be called upon to make any payments under the indemnification described above, if we are required to make such payments it could have a material adverse
effect on our financial position and results of operations. You should read the information in Item. 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital
Resources and in Note 27 to the Consolidated Financial Statements.
effect on our financial position and results of operations. You should read the information in Item. 7. Managements Discussion and Analysis of Financial Condition and Results of OperationsLiquidity and Capital Resources and in Note 27 to the Consolidated Financial Statements.