MorrisAnderson Selling Company to Repay Lender

75M

Annual Sales

25M

in Debt

Pettit Oil, Tacoma Washington

Challenge


Convenience Stores, and Bulk Oil Distribution. $75 Million Revenue. $25 Million Secured Debt.


  • Company purchased an unprofitable company and was over leveraged
  • Heating oil division was very unprofitable and management had no plan to fix the business
  • Unprofitable supplier distribution contracts
  • Excess bulk operations and equipment
  • Inventory control issues
  • Filed for Chapter 11 without getting cooperation from its secured lender
  • Attempted to negotiate a sale without professional assistance or providing adequate due diligence materials

Solution


  • MorrisAnderson was retained by the secured lender to evaluate loan compliance and monitor bankruptcy process
  • Determined that a company led bankruptcy sale process was unlikely and advised the secured lender to prepare for a relief from stay to foreclose on all collateral
  • As predicted, sale efforts fell through and MorrisAnderson took over the business through a relief from stay
  • Immediately retained key employees, initiated an organized sale process and marketed assets for sale
  • Complete a system-wide inventory and accounting of all fuel inventory and negotiated sales of convenience store and card lock facilities
  • Negotiated supplier agreement settlement and resolution of claims

Results


  • Sold all divisions, assets and inventory over a four month process
  • Negotiated settlements and other claims to mitigate offset charges against the secured collateral
  • Assisted with mediation and other litigation against secured lender
  • Through the process, MorrisAnderson achieved a 100% payback on the secured debt for the lender