Aegean Files for Chapter 11

Tuesday November 6, 2018

Aegean Marine Petroleum Network [NYSE:ANW] today has filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in New York to implement a "restructuring transition" with Mercuria.

Mercuria has agreed to provide more than $532 million in postpetition financing to fund the chapter 11 process and the bunker supplier's working capital needs, Aegean said today.

Mercuria has also agreed to serve as the "stalking horse bidder" in an effort to maximize Aegean's value as a going concern.

Earlier this year the trader took a 30% stake in Aegean and a seat on the board in exchange for $1bn in revolving credit plus $30 million of additional liquidity.

Aegean's shares tanked yesterday, falling almost 30% to $0.650.

Going forwards from here, Aegean says it will continue to explore "value-maximizing alternatives" and continue to operate its businesses as "debtors-in-possession" under the jurisdiction of the bankruptcy court.

The supplier has also filed a series of first day motions with the bankruptcy court that seek authorization "to continue to conduct their business in the normal course, including in relation to employees, customers and suppliers, among others."

"The debtors are seeking approval of the Mercuria-led postpetition financing. This financing is designed to ensure the Company has adequate working capital to fund the business and continue ordinary course operations during the Chapter 11 Cases and to fund the sale process."

Today's follows revelations last week up to $300 million of its cash and other assets were misappropriated through fraudulent activities that started as early as 2010 and involved over a dozen company employees, including members of senior management.

Ominously, the filing comes comes just one day shy of the four year anniversary of the 2014 collapse of OW Bunker.