Aegean Marine Petroleum Network Inc. announced that the U.S. Bankruptcy Court for the Southern District of New York has confirmed its plan of reorganization, subject to minor modifications. This development paves the way for the Company to emerge from Chapter 11 restructuring next week as a wholly-owned subsidiary of Mercuria Energy Group Limited (“Mercuria”), one of the world’s largest independent energy and commodity companies.
The Plan was the result of the Company’s successful global settlement with its various creditor groups, including Mercuria, the Official Committee of Unsecured Creditors of Aegean, American Express Travel Related Services Company, Inc., and certain holders of the Company’s unsecured convertible notes.
“The Court’s confirmation of the Plan is the culmination of a comprehensive restructuring of the Company’s operations and capital structure that positions the business to excel under Mercuria’s ownership. This successful stabilization of the business would not have been possible but for the dedication of the leadership and employees of Aegean.” said Tyler Baron, Aegean Board Director.
Added Baron, “With the support of Mercuria and our creditors, Aegean will emerge from the Chapter 11 restructuring significantly deleveraged, having reduced its funded debt by approximately 80%. Under Mercuria’s ownership, we will also have greater liquidity and supply capabilities than ever before and can serve our customers with a much broader suite of services. On behalf of the Aegean team, I want to thank all of our stakeholders for their support throughout this process.”
Donald Moore, Chairman of the Aegean Board, said, “The page has finally and conclusively been turned on the Company’s past issues and their resultant challenges, with all eyes now on the substantial long-term opportunities ahead. We are very pleased to have taken the necessary actions to save Aegean and, in an expedited manner, restore a key player in the global market and position it for long-term success.”
The Company commenced its Chapter 11 process on November 6, 2018, with the support of Mercuria, reorganizing in order to improve its liquidity and position the Company for long-term success. The Company has continued its normal-course operations throughout the process.
In connection with its restructuring efforts, Kirkland & Ellis LLP is acting as legal counsel to Aegean, Moelis & Company LLC is acting as investment banker to Aegean, and EY Turnaround Management Services LLC is acting as restructuring advisor to Aegean.