Marine fuel logistics company Aegean Marine Petroleum Network has secured access to USD 532 million in financing after it received US court approval of all the company’s first day motions.
The US Bankruptcy Court for the Southern District of New York granted the interim approval related to the company’s voluntary Chapter 11 restructuring, immediately improving the company’s liquidity position.
Aegean Marine said that the approvals have unlocked access to substantial capital during the restructuring process provided by the USD 532 million Debtor-in-Possession credit facility (DIP) funded by Mercuria Energy Group Limited, including an initial USD 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 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.
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 USD 681 million stalking horse bid proposed by Mercuria, has been filed with the court.