International marine fuel logistics company Aegean Marine Petroleum Network (Aegean) Thursday entered into a Memorandum of Understanding (MOU or the Agreement) with independent commodities and energy group Mercuria Energy Group.
The development spells positive news for Aegean who was facing several class action complaints from several law firms after uncovering a $200 million account discrepancy.
Under the terms of the Agreement, Mercuria intends to provide a US$1 billion trade finance facility intended to support Aegean’s existing U.S. and global revolving credit facilities.
Mercuria will also provide increased liquidity to Aegean of not less than US$30 million, adding flexibility to Aegean’s operations.
Upon closing of the trade finance facility, the Aegean will issue new shares equal to 30% of its common stock (on a pro-forma basis) to Mercuria and will invite a representative of Mercuria to join the Company’s Board of Directors.
“As part of the announced strategic review, the new leadership at Aegean has, in short order, brought forward an opportunity to completely redefine and optimise the company’s capital structure, enhance near term liquidity and position the company for a dynamic partnership with one of the world’s largest privately held integrated energy and commodity groups,” said Aegean Chairman and independent director of the Board, Donald Moore.
“We are extremely pleased to enter into this Agreement with Mercuria and look forward to working with them on a broader relationship, for the benefit of our respective stakeholders.
“Importantly, the agreement provides for immediate credit support from Mercuria for the benefit of Aegean’s banks, customers, suppliers, and logistics providers, putting the strength of one of the world’s largest independent energy and commodity companies behind Aegean.”
The Agreement also considers a potential broader strategic partnership between Aegean and Mercuria, including operational services, trading and hedging arrangements, and other support provided by Mercuria to Aegean.
Mercuria has the exclusive right to complete the trade finance facility by August 15, 2018, and to pursue the strategic partnership transaction until January 31, 2019, subject to specified exceptions and termination events.
“We look forward to further developing our relationship with Aegean and providing the flexibility to execute a strategy that enhances the Company’s operations and positions the Company for long-term success,” said Magid Shenouda, Mercuria’s Global Head of Trading.
The transactions between Aegean and Mercuria are subject to final documentation and regulatory analysis, and there can be no assurance this will be completed.
Moelis & Company is serving as financial advisor and Kirkland & Ellis LLP is acting as legal advisor to Aegean with respect to the transaction. Milbank, Tweed, Hadley & McCloy LLP is acting as legal counsel to Mercuria in connection with the transaction.
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: 5 July, 2018
Provides USD 50 million guarantee to TFG Marine in connection with the performance of subsidiaries under bunker supply arrangement with TFG Marine.
Creditors, whose debts or claims have not already been admitted, are advised to submit particulars of their claims to Deloitte Singapore on or before 27 February.
Ammonia and hydrogen, when used to fuel marine SOFCs in the future, will enhance profitability by replacing existing marine engines as a pollution-free power source.
Gasum bunker vessel “Coralius” delivered LNG bunker fuel to the car carrier, which is travelling between Europe and USA, in the port of Emden in Germany.
From 1 January 2023, it will be mandatory for all ships to calculate their attained EEXI and to initiate collection of data for the reporting of their annual operational CII and CII rating.
Points towards collaboration opportunity with CEPSA, increased demand for HFO due to 2020.
Rotterdam’s intention to mandate the usage of MFMs goes down well with licensed bunker supplier VT Group; MFM providers supportive of move but stressed continuous monitoring is needed for optimum performance.
Cost of alternative bunker fuels, bunker operations and technology advancement are some considerations to be examined by the maritime industry, says Neo, director of SDE International Pte Ltd.
Kim Hyung Joon and Han Donghoon were planning to join the Singapore entities of Hartree Group - either Hartree Partners Singapore Pte Ltd or Hartree Marine Fuels - in October, discovered management.
‘When you think of Helmsman on the next occasion, think of us as lawyers with expertise in various fields. Come to us before a problem develops. It’s the process that matters,’ says Tang Chong Jun, Executive Director.
Bernard Chew was a former shareholder of MB Marine and was an authorised signatory of the company’s cheques at the material time, according to court documents obtained by Manifold Times.
Maersk, CMA CGM, BP and Stena Bulk give insights on availability of the three potential bunker fuel types, their plans, transition from fuel oil and LNG to alt fuels, how important sustainable marine fuels are to shipowners and more.
