Bankrupt Bunkers International Back $5 Million Purchase Offer from Bomin

The deal is subject to bankruptcy court approval, which will be heard on December 10, 2015 at 3:00pm.

Bankrupt Florida-based bunker player Bunkers International Corp. (Bunkers International) is backing a $5 million cash purchase offer from the Bomin Group's U.S. entity, Bomin Bunker Oil Corporation (BBOC), and today took a step closer to having the deal approved by the bankruptcy court, court documents obtained by Ship & Bunker show.

Bomin's offer, made on November 24, 2015, is for the assets of Bunkers International along with its affiliated entities Atlantic Gulf Bunkering, LLC, and Dolphin Marine Fuels, LLC (collectively BIC), which includes among other items, all cash, all inventory, and all prepaid expenses.

The deal is now subject to the bankruptcy court approving the sale "free and clear of all claims, liens and interests of all kinds" with all sales proceeds remitted to the benefit of Bunkers International's secured lender, P.N.C. Bank, N.A..

Court documents filed today, December 1, 2015, show an expedited motion to approve the sale has been granted by the Orlando, Florida bankruptcy court to be heard on December 10, 2015 at 3:00pm.

If the deal completes, Bomin, already an active player in the U.S. with physical operations serving the U.S. Gulf and some of the East Coast, would get its first West Coast operation via the Dolphin Marine Fuels LLC entity, which serves the ports of Long Beach and Los Angeles.

BIC assets listed in the court documents include high sulfur IFO380, low sulfur fuel oil, ultra low sulfur fuel oil, cutter stock, MGO, and LSMGO located in various tanks in Alabama and California, but did not detail specific volumes.

Bunkers International filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in late August with almost $40 million in debts, saying "their primary lender ceased lending and swept all available cash."

Best Offer, Quickly Accepted

In its November 24 offer, Bomin said the proposal was good until December 4, 2015, with a November 25 filling indicating the offer was quickly accepted by Bunkers International.

"In evaluating its business, the Debtors have determined that the sale of the BIC Assets is in the best interest of the estate. Debtors have worked with a number of parties to explore the possibility of an asset sale, and believe that the proposed sale to BBOC as outlined above provides the highest and best value for their assets," the filing read.

"As a result, Debtors don't believe any bidding procedures are necessary. Based on its evaluation of its assets, the Debtors believe that the purchase price is fair and reasonable.

"Therefore, Debtors submit that the proposed sale should be approved free and clear of all liens and other interests pursuant to section 363(f) of the Bankruptcy Code."

As part of the offer, BBOC has retained the option to terminate the agreement if the sale cannot be closed on or before December 31, 2015.

Bunkers International could not be reached today for comment.

Bomin have also yet to make an official statement on the matter.

In October Ship & Bunker reported that a number of former Bunkers International staff had joined Integr8 Fuels Inc.