Aegean Chapter 11: Plan for 120-day sale process submitted to court

Business

Published Mon, 12th November 2018
by Admin

Targets 22 February, 2019 as date of sale hearing at Bankruptcy Court for the Southern District of New York.

The U.S. Bankruptcy Court for the Southern District of New York on Friday (9 November) approved the debtor-in-possession (DIP) financing facility offered by Mercuria Energy Group Limited to fund the chapter 11 process of New York-listed bunkering firm Aegean Marine Petroleum Network (Aegean, or, debtors), despite objection from an Ad Hoc Group of bondholders.

The Ad Hoc Group of bondholders on Thursday (8 November) filed an objection at the U.S. Bankruptcy Court over the DIP financing facility offered by Mercuria to bail out Aegean, alleging the development to be an “insider transaction”.

“The debtors, with the support of Mercuria Asset Holdings (Hong Kong) Limited, intend to undertake a robust, 120-day process to market their business as a going concern and otherwise solicit highest or otherwise best offers for the benefit of all parties in interest,” said Aegean on Friday.

As of 6 November, 2018 Aegean’s funded debt obligations totalled approximately $872 million consisting of 12 secured credit facilities and two issuances of unsecured convertible notes; the $532 million Mercuria DIP financing facility will supply a Stalking Horse baseline bid that provides $681 million in value to Aegean’s estates.

The company owns and/or operates a fleet of 57 vessels including 38 owned double hull bunkering tankers at more than 50 ports; it also owns or lease land-based storage facilities consisting of two terminals and more than 1,000,000 cubic meters of storage capacity in the U.S., Morocco, Canary Islands, Germany, and the U.A.E.

Not including delays to the ‘bidding procedure objection deadline’ at an unannounced date, Aegean is targeting to start the bidding procedures hearing process around 4 December 2018 and schedule the sale hearing by 22 February 2019.

A timeline organised list of events preceding the current development have been recorded by Manifold Times below:

Published: 12 November, 2018

Aegean Chapter 11: Plan for 120-day sale process submitted to court

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