Latest News 2012 September Metro Fuel Oil Files for Bankruptcy

Metro Fuel Oil Files for Bankruptcy

According to Bloomberg, the Metro Fuel Oil company has recently filed for bankruptcy. This company is a provider of heating oil, construction site fueling, and central air conditioning, among other services. The CEO of the company says that they plan to sell the entity within 90 days. The oil company will be dealing with a Chapter 11, which was filed in Brooklyn, New York. The company is based in this city and will be counseled by Kirkland & Ellis LLP. They listed about $50 million in assets and about $100 million in debt. Like in a personal bankruptcy, things may seem grim when the debt amount in a bankruptcy is twice the amount of the assets. Still, there is always hope. Some debts may be discharged, others consolidated or reduced, and the ones that are immovable may be paid off due to payment restructuring.

The company had to borrow another $10 million just to fund the bankruptcy. They say that a liquidity squeeze brought on the decision to file. The oil entity hopes that they can complete an entire sale of all access within 90 day6s and emerge from bankruptcy Before the filing, Metro Fuel Oil had a long-term outstanding secured debt of about $58.8 million. They also had about $48.3 million in bank debt and about $10.5 million in project financing related to a biodiesel plant that they were working with. The company estimates that creditors have claims to approximately $10 million.

Metro Fuel’s filing includes nine total units and a variety of creditors. The largest creditors include Bayside Fuel Oil Depot Corp. and the Ameranda Hess Corp. The company hopes that they will be able to restructure after sale and eventually succeed in keeping the company together. If you are stuck in a seemingly hopeless situation at present, then you may need to file for bankruptcy as well. To do so, you will have to secure a bankruptcy attorney to help you. Contact a lawyer through this directory today to get the representation you need to complete a successful bankruptcy.