Harken Energy

Published — July 11, 2002 Updated — May 19, 2014 at 12:19 pm ET

More Harken documents

Introduction

July 11, 2002 — The Center for Public Integrity, as a public service, is posting a second round of the documents that we obtained from the Securities and Exchange Commission under the Freedom of Information Act.

The Center obtained these documents in 2000. The first batch can still be read here.

April 20, 1990 Letter

From Mikel D. Faulkner, President of Harken Energy, to the board of directors. The letter notes that new conditions on a loan Harken sought “greatly intensifies our current liquidity problem and mandates the infusion of equity into the company.”

May 18, 1990 Letter

From Bruce N. Huff, senior vice president of Harken Energy, to the members of the company’s “special committee,” which included George W. Bush. The letter notes, “It is become evident that it will be necessary to reach a conclusion regarding the fairness of the proposal by the Major Shareholders before permanent waivers of various loan covenant violations and an extension of the due date for specific loan facilities can be obtained from our major banks. Such waivers and extensions will allow the Company to properly report the substantial portion of its debt facilities as long-term and thereby avoid any negative repercussions that might otherwise occur if the Company remains in a state of non-compliance with regard to loan covenants.”

January 9, 1991 Letter

From Bruce N. Huff, senior vice president of Harken Energy, to Edmund Coulson, chief accountant of the SEC. Huff describes in detail Harken’s position on the Aloha sale, and how it was restructured. Huff notes that in April 1990, “The immediate focus of the Company was at that time redirected to raising cash.” He also notes, “By June, 1990, the Company was constrained by its worsening cash and credit situation.”

April 12, 1991 Letter

From Herbert Janick, assistant director of the SEC Enforcement Division, to George W. Bush. The letter requests, “Copies of all Forms 3, 4 and 144, cover letters and attachments thereto that were transmitted by you, or on your behalf, to the Commission during the period September 1, 1986 through the present.”

June 21, 1991 Fax

From Herbert Janick to Joseph A. Cialone 2nd, a Baker & Botts attorney who represented both George W. Bush and Harken Energy. “We appreciate Mr. Bush’s willingness to cooperate in the staff’s inquiry,” Janick wrote in the first paragraph. The fax requests that Bush “voluntarily provide” any documents in his possession received from Jan. 1, 1990 to June 30, 1990 related to, among other things, “unusual charges” stemming from the Aloha transaction.

June 21, 1991 Fax

From Herbert Janick to Joseph A. Cialone 2nd, a Baker & Botts attorney who represented both George W. Bush and Harken Energy. The fax requests that “Harken voluntarily provide copies of all documents concerning, referring, or relating to any policies or procedures of Harken, in effect during the period of January 1, 1990, to the date of Harken’s response to this request, concerning the purchase, sale or ownership of Harken securities by any officer or director of Harken.”

July 17, 1991, SEC Memorandum

From Herbert Janick and Paul Gerlach of the Enforcement Division, the memorandum notes “Harken has asserted attorney-client privilege and refused to produce documents concerning its policies covering the purchase, sale or ownership of Harken securities by officers or directors. Bush has produced a small amount of additional documents which provide little insight as to what Harken nonpublic information he knew and when he knew it.”

July 25, 1991 Fax

From Herbert Janick to Joseph A. Cialone 2nd, a Baker & Botts attorney who represented both George W. Bush and Harken Energy. The letter describes the material that the SEC had requested that Bush and Harken “voluntarily provide.”

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