HOMER, Alaska (AP) — The city of Homer will return some of the payments received in the 90 days before Buccaneer Oil filed for bankruptcy in May 2014.

The city is agreeing to repay $8,730 rather than the nearly $17,500 demanded by the law firm representing the oil company’s liquidating trust.

City attorney Thomas Klinkner negotiated the reduced amount. In an Oct. 26 report, City Manager Katie Koester said it gives her heartburn to agree to the repayment, but that the move saves money on potential legal fees

Buccaneer Oil’s trustees have requested the return of preferential payments made to several businesses and groups. Homer Electric Association spokesman Joe Gallagher says the utility also negotiated a significant reduction in its repayment.

It’s unclear whether other payments have been settled.