Wednesday, April 15, 2009
Appalachian Oil Assets to Be Sold
Source: Convenience Store News
GREENEVILLE, Tenn. - The U.S. Bankruptcy Court for the Eastern District of Tennessee yesterday approved the appointment of P.A. (Andy) Weber, III, senior vice president of NRC Realty & Capital Advisors, LLC, as Chief Restructuring Officer for Appalachian Oil Co. Inc. of Blountville, Tenn.
Appalachian Oil, which filed for Chapter 11 bankruptcy reorganization on Feb. 9, operates 55 convenience stores in Tennessee and Kentucky.
Weber, who joined NRC last year, will supervise all operational and financial matters of the company, as well as all efforts to market and sell its assets as part of a broader agreement between Appalachian and its creditors to facilitate the sale of the company and its assets. Greystone Business Credit II LLC is the principal secured creditor.
In connection with the agreement with creditors, the company will be filing an application with the court seeking to retain NRC Realty Advisors to serve as sales agent with respect to the marketing of the company and its assets.
As previously reported by Convenience Store News Online, Appalachian reportedly owed its landlords $700,000 for March and April rents. At a hearing a week ago, landlords for many of Appalachian's retail gasoline and convenience store facilities asked for permission to terminate leases on stores and evict Appalachian, but the court gave the company an additional week to find a solution and to pay the delinquent rent.
Although no specific timeline has been established for placing the company or its assets on the market, it is "likely to be a matter of a very few weeks," said Weber.
NRC has extensive experience in the sale of convenience stores and gasoline stations, including sales of whole operating companies.
"Although it is NRC's initial impression that the best and most efficient way to market the assets of Appalachian Oil is on a portfolio basis of the entire company, all options will certainly be evaluated," said Weber in a statement. "NRC will be reaching out to companies we know who are qualified purchasers likely to have an interest in buying all or parts of this company, but we will also be welcoming inquiries from other prospective bidders."
Dennis Rubin, managing director of NRC, based out of the company's Scottsdale, Ariz. office, told Convenience Store News Online "we are optimistic we'll be very successful maximizing proceeds for both the creditors and shareholders." He reiterated the company will explore all avenues for selling the assets-whether as a w