New York listed bunkering firm Aegean Marine Petroleum Network Inc. (Aegean) on Wednesday (16 January) says it has achieved ‘significant milestones’ in its restructuring progress.
The United States Bankruptcy Court Southern District of New York on Tuesday approved its revised final motion related to $535 million in aggregate Debtor-in-Possession financing (DIP Facility) from energy and commodity firm Mercuria Energy Group Limited (Mercuria).
The Court also approved Aegean’s Restructuring Support Agreement (RSA) with Mercuria, the Official Committee of Unsecured Creditors of Aegean, American Express Travel Related Services Company, Inc., and certain holders of its unsecured convertible notes.
“The Court’s actions represent key milestones in Aegean’s restructuring process and position the Company to quickly emerge from Chapter 11 much stronger than before. Both the DIP and the RSA result from a deliberate, arm’s-length process involving world-class institutions, undertaken to ensure continued high-quality service across our global network, maximize creditor recoveries and avoid months of contentious, value-destroying litigation,” said Tyler Baron, Aegean Board Director.
“Upon completion of this process, currently anticipated around the end of the first quarter, the new company – with ample access to liquidity, streamlined operations, a refreshed management team, and the ability to leverage Mercuria’s core competencies – will be better positioned for long-term growth than ever.”
Under the terms of the Court-approved RSA, Mercuria will receive 100% of the common equity of the reorganised company. Mercuria will also fund $40 million in cash on account of general unsecured creditor recoveries at the Company and backstop a $15 million loan to a trust to fund litigation (Litigation Loan Trust).
General unsecured creditors at the parent will receive 100% of the initial proceeds from litigation claims (after repayment of the Litigation Trust Loan plus $3 million), until they receive payment in full on account of their allowed claims.
General unsecured creditors at the subsidiaries will receive full recoveries in the normal course, under the agreement.
Holders of the Aegean’s pre-prepetition common equity will receive 100% of the residual interests in the litigation claims once general unsecured creditors at the parent have received payment in full.
Pursuant to reasonable and achievable milestones, Aegean will implement its restructuring plan, and expects to emerge from Chapter 11 around the end of the first quarter of 2019.
In connection with the company’s restructuring efforts, Kirkland & Ellis LLP is acting as legal counsel to Aegean, Moelis & Company LLCis 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: Judge authorises restructuring activity to start
Related: Aegean Chapter 11: Mercuria counters Oaktree/Hartree proposal plan
Related: Aegean Chapter 11: Bondholders object Mercuria’s $532 million DIP Facility
Related: Aegean Chapter 11: Creditor list shows exposure of 30 parties
Related: Aegean files for Chapter 11, Mercuria to be ‘stalking horse bidder’
Related: Aegean auditors alleges up to $300 million ‘misappropriated’
Related: Aegean: Forensic auditors target investigations on four companies
Related: President of Aegean to leave, effective November 15
Related: Rumours: Alleged changes at Aegean’s management
Related: Mercuria starts ‘sole lender’ arrangement with Aegean
Related: Aegean establishes new management committee
Related: Mercuria bails Aegean out with $1 billion credit
Related: Ocean Intelligence comments on Aegean credit downgrade
Related: Aegean shares down 71%, to face legal investigations
Related: Aegean audit uncovers $200 million account discrepancy
Related: Aegean unfolds several business developments
Related: Aegean drops founder, elects new board members
Related: Aegean requests for ‘additional time’ to file annual report
Related: Aegean welcomes new Chief Financial Officer
Related: Lawsuit filed against Aegean’s H.E.C. acquisition
Related: Aegean to offer ‘one-stop-shop solution’ with H.E.C. acquisition
Related: Aegean in $367 million acquisition of port reception facilities services group
Related: Aegean shareholders ‘gravely concerned’ over board’s silence
Related: Shareholders nominate ‘highly qualified’ candidates to Aegean board
Related: Aegean Marine Petroleum Network under shareholder pressure
Published: 17 January, 2019
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