Americas News
Aegean Claiming $28 Million in Compensation from Hess Over Purchase of its US East Coast Bunker Business
A recent U.S. Securities and Exchange Commission (SEC) filing has revealed Aegean Marine Petroleum Network Inc. [NYSE: ANW] (Aegean) has taken legal action against Hess Corporation (Hess), and is seeking $28 million in compensation over what it claims was a lack of transparency in connection with its purchase of Hess' U.S. East Coast bunkering business.
The U.S. East Coast business was bought by Aegean Bunkering (USA) LLC in 2013 for $30 million.
"On December 18, 2014, we and Aegean Bunkering (USA) LLC, or the Aegean Parties, filed a one-count complaint for breach of contract against Hess in New York Supreme Court, New York County (653887/2014)," Aegean wrote in its annual report filed with the SEC on Friday May 15, 2015.
"In the complaint, the Aegean Parties allege that Hess breached certain express representations and warranties in representing its financial condition in an agreement pursuant to which Hess sold its bunker oil business to Aegean Bunkering (USA) LLC.
"The Aegean Parties claim approximately $28 million in compensatory damages, exclusive of interest and costs.
"On February 9, 2015, Hess filed an answer to the complaint. We are not in a position to comment further on this matter at this time."
Aegean said the deal was its entrance into supplying U.S. customers, and included 250,000 cubic metres of leased tank storage in the ports of New York, Philadelphia, Baltimore, Norfolk, and Charleston.
Aegean has also made a number of further acquisitions since the Hess deal.
Late last year, it expanded in the Gulf of Mexico after taking over two OW Bunker charters, and has also incorporated much of the bankrupt oil supplier's former infrastructure in Los Angeles.
