Bomin Buys Bunkers International Inventory, But $5M Acquisition Bid Falls Through

Sources tell Ship & Bunker that Bomin is unlikely to revive its interest in the deal.

Bomin Group's U.S. entity, Bomin Bunker Oil Corporation (BBOC), has failed in its bid to buy bankrupt Florida-based bunker player Bunkers International Corp. (Bunkers International), although it has purchased some of its remaining bunker inventory, Scott Shuker, the company's bankruptcy attorney, has confirmed to Ship & Bunker.

BBOC officially tabled a $5 million bid on November 24, 2015 which was quickly backed by Bunkers International, who said in a November 25 filling it provided "the highest and best value for their assets."

However official objections to the offer were filed by a number of creditors on December 8, 2015, citing among other issues, concerns that the sale price was "several million dollars less" than what Bunkers International had claimed its assets were worth, and that PNC Bank, N.A. (PNC) was to be the sole beneficiary of the sale proceeds.

One of the companies objecting to BBOC's offer was Sea Bunkering International B.V., itself a Bomin Group entity.

An expedited motion to approve the sale was scheduled to be heard on December 10, 2015, but Shuker said the deal was ultimately blocked by PNC, who failed to back the proposed offer.

A December 23, 2015 report by an unaffiliated maritime media service had suggested that on December 8, 2015 Bunkers International had rejected Bomin's offer, but Shuker told Ship & Bunker this was "completely inaccurate."

Sources understood to be familiar with the acquisition attempt have told Ship & Bunker that Bomin is unlikely to revive its interest in the deal, and Bunkers International is no longer of interest to them.

As part of the offer, BBOC had retained the option to terminate the agreement if the sale was not closed on or before December 31, 2015.

Alabama Inventory

Some sources Ship & Bunker spoke to noted that on November 24, 2015 - the day BBOC tabled its official bid - Bomin notified several bunker buyers that "effective immediately" it had avails of IFO380 and LSMGO product at Mobile, Alabama - the location of Atlantic Gulf Bunkering, LLC, Bunkers International's Gulf coast physical supply entity.

Shuker explained to Ship & Bunker that this was not a coincidence, and that Bomin had purchased the entirety of Bunkers International's product in Alabama.

Ship & Bunker has contacted Bomin for comment on the developments, but has not yet received an official response.

Following the collapse of the Bomin deal, on December 23, 2015 Bunkers International filled a Plan of Liquidation that looked to address all creditor claims.

This case will be heard on January 28th.

Bunkers International filed for bankruptcy in August 2015, saying, "The companies were forced to take this action after their primary lender ceased lending and swept all available cash."