Metro Fuel Oil gets immediate dismissal of bankruptcy case from court

By Kali Hays

New York, Dec. 23 – Metro Fuel Oil Corp.’s Chapter 11 bankruptcy case has been dismissed by the U.S. Bankruptcy Court for the Eastern District of New York, according to a Tuesday consent order.

The dismissal is effective as of the order date, and the company’s official committee of unsecured creditors has been dissolved.

As previously reported, company principles Paul J. Pullo Jr. and Gene V. Pullo asked for a dismissal of the case in October.

In March Metro Fuel’s U.S. trustee and its creditor Bayside Fuel Oil Depot Corp., requested that its case be converted to Chapter 7 bankruptcy in March, with Bayside claiming the company’s inability to confirm a plan is due to administrative insolvency.

Bayside withdrew its motion after a settlement allowing $6.23 million of claims against Metro Fuel was approved in September.

The trustee said that the company’s operating reports “demonstrate continuing losses” and “as the debtors have ceased operations and do not appear to be able to confirm a plan” conversion was necessary.

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, 2012 under Chapter 11 case number 12-46913.

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