Thursday, June 11, 2009
Appco Settlement Moves Forward; Sale Plan Announced
Source: The Greeneville Sun
U.S. Bankruptcy Judge Marsha Parsons on Wednesday approved a "compromise and settlement" that could save 300-plus jobs, maximize payment to creditors and make it easier for Appco chief restructuring officer Andy Weber to market Appco's 47 remaining stores, according to the Johnson City Press.
Appco, which operates a convenience store at the intersection of the 107 Cutoff and Jones Bridge Road in southern Greene County, filed for Chapter 11 bankruptcy protection on Feb. 9.
While everyone from Appco's landlords and its lender to creditors gave something up in the deal, only Titan Global Holdings - which bought Appco from longtime owner Jim MacLean in a September 2007 leveraged buyout – objected to the settlement, according to the Johnson City Press.
Parsons, though, rejected Titan attorney Gene Humphreys' argument that a technicality involving "leasehold mortgages" and lender Greystone Business Credit needed to be pursued further in court.
"The delay is not in the best interest of the estate," Parsons said. "The only way this case can produce any money is through a sale. Frankly, Titan hasn't offered a 'Plan B' if this settlement doesn't take place."
BIDS FOR STORES SOUGHT
Also on Wednesday, Chicago-based NRC Realty & Capital Advisors, LLC, announced that it will handle the sale of the Appco stores.
"Today's action designates NRC Realty & Capital Advisors, LLC, as the agent to execute the sale of 47 gasoline stations and convenience stores operated by Appco in northeastern Tennessee, southwestern Virginia and eastern Kentucky," said NRC Realty & Capital Advisors, LLC in a news release. "All stores are leasehold properties."
Also approved Wednesday were sale procedures and NRC's accelerated sales schedule, according to the news release.
"NRC's sealed bid sale process has been used for the disposition of thousands of retail petroleum stations and convenience stores by other companies, including major oil companies, over the past 20 years," the news release said.
Under the terms approved Wednesday, Appco's stations will be offered for sale in a "buy one, some or all" format, according to the news release.
Twenty-six stores have been subdivided into small groups of stores operating under six regional master leases.
Bids on master lease stores must include all stores within each regional master lease.
A complete list of stores is available online at www.nrc.com/906