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Metro Fuel Oil seeks court approval of bid procedures for asset sale
By Caroline Salls
Pittsburgh, Oct. 9 - Metro Fuel Oil Corp. requested court approval of the bid procedures for the proposed sale of its assets, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of New York.
As required by the terms of its debtor-in-possession facility, the company said it plans to complete a sale of its assets, whether on a going-concern basis to a single bidder or in parts to multiple bidders, within 90 days of the bankruptcy filing date.
Metro Fuel Oil has not entered into a stalking horse bid but said it is "cautiously optimistic" that it will do so.
If a stalking horse bidder is selected, the company said it would pay that bidder 3% of the proposed purchase price if it is not the high bidder at auction.
Metro Fuel Oil is also seeking court approval to require a minimum overbid of 2% of the cash purchase price included in any stalking horse bid.
Under the proposed procedures, preliminary bids are due by 4 p.m. ET on Oct. 31. Specifically, parties must submit the documents required for participation in the auction by this deadline.
All binding bids are due by 4 p.m. ET on Dec. 6. The auction will be held on Dec. 11, and the sale hearing is scheduled for Dec. 13.
A hearing on approval of the bid procedures is set for Oct. 23.
Metro Fuel is a Brooklyn, N.Y.-based energy company that supplies bioheat, biodiesel, heating oil, central air conditioning units, ultra low sulfur diesel fuel, natural gas and gasoline throughout the New York City metropolitan area and Long Island. The company filed for bankruptcy on Sept. 27 under Chapter 11 case number 12-46913.
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