October 1, 2012 [OPIS] - Metro Fuel Oil Corp. and its subsidiaries, one of the largest independent petroleum and energy services terminals in the New York Metropolitan Area, said late on Friday that its doors remain open, and deliveries of heating oil and other products will continue.
OPIS notes that with its continuous heating oil deliveries, Metro, a strong proponent of renewable fuel blended heating oil, would be able to supply bioheat or biofuel blended heating oil as mandated by New York State from Oct. 1.
The 70-year-old Brooklyn-based heating oil company filed for bankruptcy on Thursday in New York because of cost overruns and a warm winter in 2012. The top two creditors are Bayside Fuel Oil Depot and Hess.
In addition, Metro said that the bankruptcy court has granted immediate access to financing, and the company aims to recapitalize.
Metro is now actively looking to engage a strategic partner or investor to facilitate future growth and expansion of the company.
“We want to be clear about one thing- our doors are open and we are continuing to make deliveries,” said Paul Pullo, the company’s president.
“We are committed to the relationships we have with our customers, vendors and our dedicated employees and are working to find a partnership that will put Metro on solid financial footing and prepare us for the future,” he added.
Metro is grateful for the financing support from Third Avenue Management LLC and Zell Credit Opportunities Master Fund LP, who have provided a $10 million financing commitment, said Chief Restructuring Officer David Johnston of AlixPartners.
The court granted immediate access to $3 million of financing and the full use of cash generated from operations.
