Service Type: Ch. 11 Restructuring/M&A
Client: Appalachian Oil Company (Appco)/ Greystone Capital
Client Description: Chief Restructuring Officer of regional convenience retailer and fuel distributor
- The Company’s revolving credit lender, Greystone Capital, reduced Appco’s credit limits during the rapid rise of crude and refined products in 2008, resulting in a deficiency of working capital to fund the Company’s operations and inventory purchases.
- Mr. Weber and NRC were hired by the Court at the request of both the Debtor and the Secured Lender to re-ignite the 68 store convenience chain and wholesale fuel business after 2 months of operations with no inventory. As an all-leasehold business, the majority of Appco’s real estate was held under a Master Lease with numerous non-strategic properties and burdensome rents. Appco had a limited DIP facility to work with to accomplish the task.
- The Court authorized Mr. Weber as the Chief Restructuring Officer, and sole Director and Officer of the Debtor, and to conduct a future sale of the assets.
- Mr. Weber successfully restructured the 50+ property Master Lease by challenging the Master Lease in Federal Court and ultimately re-negotiating all terms and conditions of the Master Lease into individual leases with landlord. Other leases were restructured or rejected to create a profitable entity.
- Mr. Weber re-engaged fuel and merchandise suppliers through court-approved priority contracts, overhauled the management and operating structure, and managed the Company on behalf of the Court, while developing marketing plans for the upcoming sale process.
- The Court approved the restructuring plan and landlord settlement, paving the way for the sale to take place.
- NRC successfully marketed the Company to financial and strategic buyers, optimizing the value to the estate through the sale process.
- A single buyer was selected as the best option for the Company, which also resulted in the retention of the majority of the employees in Appco; a particularly important aspect for the Court in a high-unemployment area of the Tennessee.