Marine fuel logistics company Aegean Marine Petroleum Network informed that its reorganization plan has been confirmed by the US Bankruptcy Court for the Southern District of New York.
As explained, the development paves the way for the company to emerge from Chapter 11 restructuring next week as a wholly-owned subsidiary of Mercuria Energy Group Limited, a Swiss energy and commodity company.
“The Court’s confirmation of the plan is the culmination of a comprehensive restructuring of the company’s operations and capital structure that positions the business to excel under Mercuria’s ownership,” Tyler Baron, Aegean Board Director, commented.
The reorganization plan was the result of the company’s global settlement with its various creditor groups, including Mercuria, the Official Committee of Unsecured Creditors of Aegean, American Express Travel Related Services Company, and certain holders of the company’s unsecured convertible notes.
“With the support of Mercuria and our creditors, Aegean will emerge from the Chapter 11 restructuring significantly deleveraged, having reduced its funded debt by approximately 80%. Under Mercuria’s ownership, we will also have greater liquidity and supply capabilities than ever before and can serve our customers with a much broader suite of services,” Baron added.
“The page has finally and conclusively been turned on the company’s past issues and their resultant challenges, with all eyes now on the substantial long-term opportunities ahead. We are very pleased to have taken the necessary actions to save Aegean and, in an expedited manner, restore a key player in the global market and position it for long-term success,” Donald Moore, Chairman of the Aegean Board, noted.
Aegean Marine, which markets and physically supplies refined marine fuel and lubricants to ships in port and at sea, commenced its Chapter 11 process on November 6, 2018, with the support of Mercuria, reorganizing in order to improve its liquidity. The company has continued its normal-course operations throughout the process.