SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 25, 2000
CROWN ENERGY CORPORATION
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(Exact name of registrant as specified in its charter)
Utah 0-19365 87-0368981
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State or other jurisdiction Commission File No. IRS Employer ID #
of incorporation
215 South State, Suite 650, Salt Lake City, Utah 84111
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Address and zip code of principal executive offices
801-537-5610
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Registrant's telephone number
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Item 1. Changes in Control of Registrant
Not Applicable
Item 2. Acquisition or Disposition of Assets
Not Applicable
Item 3. Bankruptcy or Receivership
Not Applicable
Item 4. Changes in Registrant's Certifying Accountant
Not Applicable
Item 5. Other Events
On July 25, 2000, Crown Energy Corporation ("Crown Energy") brought
suit against MCN Energy Group, Inc. ("MCN"), MCNIC Pipeline & Processing Company
("MCNIC") and certain officers of MCN and MCNIC. The suit was brought in the
United States District Court for the District of Utah, Central Division, and is
styled Crown Energy Corporation, Crown Asphalt Corporation, and Crown Asphalt
Products Company v. MCN Energy Group, Inc., MCNIC Pipeline & Processing Company,
Howard L. ("Lee") Dow III, and William E. Kraemer, Civil No. 2:00CV-05873ST.
Crown Energy's action arises from the joint ventures between affiliates
of Crown Energy and MCNIC with regard to the asphalt business in the Western
United States involving the mining, processing, storage, manufacture, and
marketing of asphalt. Plaintiffs allege claims against defendants for breach of
fiduciary duties, economic duress, breach of implied covenants of good faith and
fair dealing, breach of contracts, estoppel, intentional interference, and trade
libel and slander of title as a result of defendants' wrongful and bad faith
conduct in the joint venture relationships. Damages of an amount exceeding $100
million are sought on plaintiffs' claims for breach of fiduciary duties,
economic duress, and breach of implied covenants of good faith and fair dealing,
with the full amount of damages on all claims to be proven at trial. While there
is no way of predicting or knowing the outcome of the litigation which is now in
process, Crown Energy is confident in its claims and will continue to pursue
them with vigor.
On June 20, 2000 MCNIC filed a Complaint in the Third Judicial District
Court, Salt Lake County, Utah, against Crown Asphalt Distribution, L.L.C.
("CAD") under Civil No. 000904867 (the "MCNIC Complaint"). The action seeks to
foreclose MCNIC's alleged mortgage and security interest in and to certain real
and intangible personal properties of Crown Distribution. For a complete
discussion of the .MCNIC Complaint, see the Form 8-K filed by Crown Energy,
dated June 26, 2000, which is incorporated by this reference.
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On August 1, 2000, Crown Energy and CAD filed their Answer and
Counterclaims to the MCNIC Complaint and named additional counterclaim
defendants, MCN Energy Group, Inc., Howard L. ("Lee") Dow III, and William E.
Kraemer. Crown Energy and CAD's Answer and Counterclaims substantially denied
all of the allegations set forth in the MCNIC Complaint and alleged numerous
counterclaims, including breach of fiduciary duty, economic duress, breach of
implied covenants of good faith and fair dealing, breach of contracts, estoppel,
intentional interference, trade libel and slander of title, and abuse of
process.
Crown Energy and CAD, pursuant to their counterclaims, have requested a
jury trial and are seeking relief in the way of damages in amounts to be proven
at trial, punitive damages, attorney's fees, interest, costs and any other
relief to which they may be entitled. While there is no way of predicting or
knowing the outcome of the litigation which is now in process, Crown Energy and
CAD are confident in their defenses and counterclaims and will continue to
pursue them with vigor.
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SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
CROWN ENERGY CORPORATION
/s/ Alexander L. Searl
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Alexander L. Searl
Chief Operating Officer and
Chief Financial Officer
DATED: August 3, 2000
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