Metro Fuel Oil gets emergency interim access to $3 million of DIP loan

By Caroline Salls

Pittsburgh, Sept. 28 - Metro Fuel Oil Corp. has been granted emergency interim access to $3 million of its proposed $10 million of debtor-in-possession financing, according to a Friday filing with the U.S. Bankruptcy Court for the Eastern District of New York.

The DIP lenders are Third Avenue Special Situations (Master) Fund, LP and Zell Credit Opportunities Master Fund, LP.

The term loan will mature the earlier of 90 days from the filing date and the closing of a sale of substantially all of the company's assets. There is an option for a single 30-day extension of the maturity date.

Interest will be 6%, which will be payable in kind and added to the principal amount of the DIP facility during the term of the loan.

Metro has paid a total of $200,000 in commitment fees.

According to the DIP loan motion filed Thursday, the company was asking the court to grant interim access to $5 million of the loan. A further interim hearing has been scheduled for Oct. 9.

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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