Ailing Vulcan Owes Oklahoma National Bank

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Ailing Vulcan Owes Oklahoma National Bank

Newsok.com October 6, 1982
Marilyn Staton, Tim Chavez

The attorney for an Oklahoma City oil and gas firm in bankruptcy proceedings said the energy company owes "between $1.8 million and $2.2 million" to Oklahoma National Bank, the south Oklahoma City bank purchased Sunday by First National Bank and Trust Co. Vulcan Oil and Gas Corp., which filed Chapter 11 bankruptcy reorganization Sept. 10, had at least six loans with Oklahoma National worth $4.35 million at the time they were issued, according to files in Oklahoma County Courthouse. Some of the loans were made to Vulcan Oilfield Services but secured by Vulcan Oil and Gas.

The amount still due on the loans is between $1.8 million and $2.2 million, attorney Brian H. Upp confirmed Tuesday afternoon. Oklahoma National will be Vulcan's largest secured creditor when all its bankruptcy filings are complete.

Vulcan has filed its list of its ten largest unsecured creditors, most of whom are oil and gas related firms.

Its list of creditors includes General Motors Aceptance Corp. for a 1980 Roll Royce car Vulcan bought for $85,000.

Vulcan's loans with Oklahoma National were backed by oil and gas wells, leases and equipment.

Its first loan, worth an unspecified amount, was made in January 1980 and backed by Vulcan's interests in seven Okmulgee County wells.

Two loans, each worth $1.2 million, were made in August 1980. One loan was backed by interests in four Pawnee County wells, while another had seven Okmulgee County wells as its security.

Six of the seven Okmulgee County wells used in the January 1980 loan appear as collateral for one of the August loans.

In August 1981, Oklahoma National loaned $1.5 million to Vulcan, with five Pawnee County wells behind it.

Other loans listed in documents, but without a listing of collateral, include a $310,000 loan made in July 1981 and a $20,123.51 loan made Jan. 19, 1982.

The last loan, worth $120,000, was made May 14, 1982 after Vulcan posted all its current and future accounts receivable as security on a form signed by Paul Doughty, Oklahoma National's executive vice president. An accounts receivable is money due a company for work performed.

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