Hope I'm not waking anybody up from a peaceful sleep...
Just now learned that I can copy the Texas SEC complaint form onto a thumb drive and for a small fee Office Depot will print it out for me.
This will be done as quickly as possible.
Key points for your/our consideration remain:
1. Delek did not release any written guidance regarding the elimination of forward distributions affecting ALDW unitholders. Thus, the investing community would assume no changes until such time as the merger was completed with February 7th of 2018 being the final day of ALDW's stand-alone status. For this reason we unitholders expected distributions covering Quarter 4 of 2017 and a prorated Quarter 1 covering 2018.
2. Devastation wrought by Hurricane Harvey highlighted the increasing value of ALDW's assets as that company was not damaged by the storm. Analysts therefore had formed a very positive consensus in arriving at an unusually positive distribution expectation. ALDW is the only notable refiner in its geographical area of coverage and as recent SEC filings by Delek will substantiate, the refining segment proved highly accretive to the acquiring company (Delek) bringing about a 129% bottom line increase in Delek's bottom line for the past quarter..
3. We former ALDW unitholders held onto our positions solely for the opportunity to receive our distributions. Due to Delek's decision to recognize ALDW unitholders via a 0.49 conversion basis (2 units of ALDW to be represented by 1 share of DK), only the assumed ALDW distribution prevented unitholders from cashing out altogether as the rate of conversion was largely equal with only the distribution representing the difference.
4.There were institutional changes taking place in the closing several months of ALDW's existence covering October through December of 2017. Some of these involved adding units at a time when only distributions could have been responsible for driving the purchases. After all, both Delek and Alon Energy Partners were already matching stride on a daily basis inasmuch as it was made widely known that one would soon be acquired by the other on a two-for-one basis.
This begs the question: Were the involved institutional buyers in collusion with Delek so as to make things appear cleaner than they were? I'm betting that some institutions were setting themselves up to expand their book-running operations through back-room deals, thus sacrificing the distributions in lieu of juicier opportunities down the road.
5. It was only when I managed to connect with Keith Johnson, Delek's Investor Relations Vice President that I learned there'd be no more distributions. I'd called three times without a return call from his office. My last call got him on the phone at which time I asked about the distributions in question. He was not expecting my call and was clearly uncomfortable. Regaining his balance he told me there would not be any further distributions. He explained that ALDW no longer exists. I told him that the merger did not occur until February 7th of this year and my concern involved periods prior to the finalizing of the merger. I held my ground, informing him of my own IR background. I explained that the unusual gains recorded by DK were conspicuously the result of ALDW refining assets as admitted in the most recent Conference Call transcript, with 90% required by laws governing MLP status to be distributed to unitholders. I added that I doubted the MLP rules of operation had been abandoned by Delek until the very last moment as the ledgers would demonstrate DK's liability in terms of taxes owed. He stammered and finally told me he'd have "legal" et back to me. I've not been contacted yet.
6. I reminded MR. Johnson that Delek could not possibly have blended results of both affected companies without recognizing the imprudence of such unlawful action. Backdating paperwork is never an option as it effectively cheats our government of tax monies due.
7. MLPs routinely provide investors with guidance detailing distributions usually several weeks prior to establishing the date of record. A number of us former ALDW unitholders called the Investor Relations office because we had not received any information at all. ALDW always furnished participants with this information. Quarter 4 of 2017 marks the first time this was not the case. I'd been a unitholder from late 2014 forward and can attest to what had been ALDW's common practice. There had never been an issue until Delek came onto the scene, declaring that because the final papers were signed in 2018, therefor rules governing MLPs and ALDW's obligations ceased to exist. This amounts to back-dating.
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There you have it, from me, at least. My wife will proof it later today and I'll make changes as deemed reasonable. I also want your input before I submit my complaint. If I've omitted something, please tell me.
