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
‘Ecoslops is proud to be able to count on the EIB and its teams to support it in its European development.’
Enters six-month leasing agreement for 120,000 cubic meters of fuel oil storage prior to IMO 2020, reports Reuters.
A factor which weighed heavily in favour of forfeiture was Prime South being extensively used to receive misappropriated gasoil from Shell Pulau Bukom.
Maersk Tankers will meanwhile closely monitor developments within the region, spokesman tells Reuters.
Trafigura Pte Ltd and Freepoint Commodities Singapore Pte Ltd reportedly received a combined 2,500 mt of VLSFO from Universal Terminal, reports Reuters.
‘Zhejiang is growing to be one of the largest free trade zones in China,’ says price reporting agency.
‘The JMs have failed to discharge their duties by blindly helping the Banks mount a false case against the Defendant,’ wrote defence lawyers representing former IPP Director Dr Goh Jian Hian in court statement.
Lead prosecutor Andreas Myllerup Laursen aims for a fine and a prison sentence in the so-called Syria case scheduled to commence in Odense, Denmark on 26 October, writes the Danish publication.
In a modern re-telling of the story of David versus Goliath, local bunker barge owners/charterers successfully resisted claims brought in the Singapore courts by Phillips 66 for misdelivery of bunkers.
Bunker barge owners and operators; traders and suppliers; banks, including players in other countries, will have to re-examine respective operations, advises Helmsman Associate Director Jonathan Tan.
Vopak BL was a non-essential document with no contractual force and had no effect as a contract of carriage or as a document of title, states written Judgement issued by Singapore Court of Appeal.
Dwivedi Vivek Kumar ended his tenure as Global Head – Bitumen & Shipping & Regional Head – APAC at GP Global APAC on 10 November 2020 due to internal structuring of the GP Global Group.
