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Aegean Chapter 11: U.S. Bankruptcy Court grants first day motions

20 Nov 2018

The U.S. Bankruptcy Court for the Southern District of New York has granted interim approval to all New York listed bunkering firm Aegean Marine Petroleum Network Inc. (Aegean)’s first day motions related to its voluntary Chapter 11 restructuring.

The approvals by the Court immediately improve the company's liquidity position, and ensure that suppliers, vendors, and employees, among other critical partners, continue to be paid in the normal course of business, said Aegean on Tuesday (20 November).

Through the Court approvals, Aegean has access to substantial capital during the restructuring process provided by the $532 million Debtor-in-Possession credit facility (DIP) funded by Mercuria Energy Group Limited (Mercuria), including an initial $40 million of incremental cash over the next 30 days to support operations.

“The company continues to operate in the normal-course and all payments to suppliers and vendors have been made and will continue to be made during the relatively short anticipated duration of the Chapter 11 process,” said Donald Moore, Chairman of the Aegean Board.

“The Court's approval of our First Day motions is an important step forward in the restructuring process and enables access to incremental liquidity enabling the company to continue to provide customers high quality service across our global network.”

The company and certain of its subsidiaries filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code on November 6, 2018, with the support of Mercuria, a key strategic partner and one of the world’s largest independent energy and commodity companies.

In addition to providing the DIP to fund the Chapter 11 process and the company’s working capital needs, Mercuria is also acting as the stalking horse bidder in a sale process designed to maximize the value of the Company as a going concern.

The Asset Purchase Agreement, including the $681 million stalking horse bid proposed by Mercuria, has been filed with the Court.

In connection with its restructuring efforts, Kirkland & Ellis LLP is acting as legal counsel to Aegean, Moelis & Company LLC is acting as investment banker to Aegean, and EY Turnaround Management Services LLC is acting as restructuring advisor to Aegean.

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

Related: Aegean Chapter 11: Official committee of unsecured creditors appointed
RelatedAegean Chapter 11: Plan for 120-day sale process submitted to court
RelatedAegean Chapter 11: Bondholders object Mercuria’s $532 million DIP Facility
RelatedAegean Chapter 11: Creditor list shows exposure of 30 parties
RelatedAegean files for Chapter 11, Mercuria to be ‘stalking horse bidder’
RelatedAegean auditors alleges up to $300 million ‘misappropriated’
RelatedAegean: Forensic auditors target investigations on four companies
RelatedPresident of Aegean to leave, effective November 15
RelatedRumours: Alleged changes at Aegean’s management
RelatedMercuria starts ‘sole lender’ arrangement with Aegean
RelatedAegean establishes new management committee
RelatedMercuria bails Aegean out with $1 billion credit
RelatedOcean Intelligence comments on Aegean credit downgrade
RelatedAegean shares down 71%, to face legal investigations
RelatedAegean audit uncovers $200 million account discrepancy
RelatedAegean unfolds several business developments
RelatedAegean drops founder, elects new board members
RelatedAegean requests for ‘additional time’ to file annual report
RelatedAegean welcomes new Chief Financial Officer
RelatedLawsuit filed against Aegean’s H.E.C. acquisition
RelatedAegean to offer ‘one-stop-shop solution’ with H.E.C. acquisition
RelatedAegean in $367 million acquisition of port reception facilities services group
RelatedAegean shareholders ‘gravely concerned’ over board’s silence
RelatedShareholders nominate ‘highly qualified’ candidates to Aegean board
RelatedAegean Marine Petroleum Network under shareholder pressure

Published: 20 November, 2018

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