NEW YORK--(BUSINESS WIRE)--Aegean Marine Petroleum Network Inc. (NYSE:ANW) (“Aegean” or the “Company”) announced today that the U.S. Bankruptcy Court for the Southern District of New York (the "Court") granted interim approval of all the Company's first day motions related to its voluntary Chapter 11 restructuring. The approvals by the Court immediately improve the Company's liquidity position, and ensure that suppliers, vendors, and employees, among other critical partners, continue to be paid in the normal course of business.
Through the Court approvals, the Company has access to substantial capital during the restructuring process provided by the $532 million Debtor-in-Possession credit facility (“DIP”) funded by Mercuria Energy Group Limited (“Mercuria”), including an initial $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 Court's approval of our First Day motions is an important step forward in the restructuring process and enables access to incremental liquidity enabling the Company to continue to provide customers high quality service across our global network.”
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, a key strategic partner and one of the world’s largest independent energy and commodity companies.
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 $681 million stalking horse bid proposed by Mercuria, has been filed with the Court.
In connection with its restructuring efforts, Kirkland & Ellis LLP is acting as legal counsel to Aegean, Moelis & Company LLC is acting as investment banker to Aegean, and EY Turnaround Management Services LLC is acting as restructuring advisor to Aegean.
Additional information about the Chapter 11 cases, court filings and other documents related to the Chapter 11 cases are available on a website administered by the debtors’ claims and noticing agent, Epiq Corporate Restructuring, LLC, at http://dm.epiq11.com/aegean.
About Aegean Marine Petroleum Network Inc.
Aegean Marine Petroleum Network Inc. is an international marine fuel logistics company that markets and physically supplies refined marine fuel and lubricants to ships in port and at sea. The Company procures product from various sources (such as refineries, oil producers, and traders) and resells it to a diverse group of customers across all major commercial shipping sectors and leading cruise lines. Currently, Aegean has a global presence in more than 30 markets and a team of professionals ready to serve its customers wherever they are around the globe. For additional information please visit: www.ampni.com.
Cautionary Statement Regarding Forward-Looking Statements
This release contains “forward-looking” statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” “will,” and similar expressions are forward-looking statements. These forward-looking statements relate, in part, to the risks and uncertainties relating to the ability of the Company to continue as a going concern; the debtors’ ability to obtain approval by the bankruptcy court of the relief requested in the first day motions, for DIP financing, any sale, and any plan of reorganization of the Company, among other things; the ability of the debtors to develop and consummate one or more plans of reorganization with respect to the Chapter 11 cases; the bankruptcy court’s rulings in the Chapter 11 cases and the outcome of the Chapter 11 cases in general; the length of time the debtors will operate under the Chapter 11 cases; risks associated with third-party motions in the Chapter 11 cases; the potential adverse effects of the Chapter 11 cases on the debtors’ liquidity, results of operations or business prospects; the ability to execute the Company’s business and restructuring plan; increased legal costs related to the Chapter 11 cases and other litigation; the inherent risks involved in a bankruptcy process; and the other risks and uncertainties disclosed in the Company’s filings with the SEC. Given the risks and uncertainties inherent in forward-looking statements, you are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements speak only as of the date on which the statements are made. Aegean undertakes no duty, and expressly disclaims any obligation, to update these forward-looking statements to reflect any future events, developments or otherwise.