Wednesday, June 10, 2009
Bankruptcy Judge Approves Appalachian Oil Sale
Source: Convenience Store DecisionsBy CSD Staff
The U.S. Bankruptcy Court for the Eastern District of Tennessee today gave final approval for the prompt sale of the assets of Appalachian Oil Co. Inc.
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. All stores are leasehold properties. Also approved today were sale procedures and NRC's accelerated sales schedule.
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. Under the terms approved today, Appco's stations will be offered for sale in a "buy one, some or all" format. 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, or by calling (800) 747-3342, ext. 906.
A confidential information memorandum (CIM) will be available to prospective bidders on June 11. The CIM will contain information on the sealed bid procedures and relevant information about the properties, including store attributes, financial summaries and lease information. Bidders will have approximately four weeks to prepare their bids, with final bids to be submitted no later than Thursday, July 9.
Prospective bidders who have accepted the CIM will have access to extensive data through an online "Virtual Deal Room" (VDR) for use in evaluating individual stores and preparing their bids. The VDR will include standard due diligence information as well as a copy of the purchase and sale agreement.
NRC, Appco, Appco's creditors, and the bankruptcy court expect to move quickly in evaluating all bids and selecting those to be accepted. All sales are expected to close within ten days of court acceptance of the winning bids.
Appco has embroiled in controversy since filing Chapter 11 in January. Stores ran out of fuel and suppliers cit off the units as debts mounted. In March, two months after filing for chapter 11 bankruptcy, Appco's convenience stores reopened for business–including fuel–but several of their QSRs remained dark.
A complete list of st