Summary
Xcel Energy Inc. (XEL) filed an 8-K on March 23, 2007, to report on the status of its lawsuit against the U.S. government concerning the deductibility of interest expense on corporate-owned life insurance (COLI) policies. The company has been seeking to deduct accrued interest on these policies since April 2004. The U.S. District Court for the District of Minnesota has denied both Xcel Energy's and the government's motions for summary judgment, indicating that significant factual disputes remain. This decision means the case will proceed to trial, which is currently scheduled to commence on July 24, 2007, unless the parties agree to an earlier trial before the Magistrate Judge.
Key Highlights
- 1Xcel Energy is involved in a lawsuit with the U.S. government regarding the deductibility of interest expense on COLI policies.
- 2The lawsuit was initially filed in April 2004.
- 3Both Xcel Energy and the government filed motions for summary judgment in 2006.
- 4A Magistrate Judge recommended denying both summary judgment motions due to disputed fact issues.
- 5On March 23, 2007, the U.S. District Court adopted the Magistrate Judge's report and denied the cross-motions for summary judgment.
- 6The denial of summary judgment indicates the case will proceed to trial.
- 7A trial is tentatively scheduled to begin on July 24, 2007.