Metro Fuel Heads To Ch. 11 With Hopes Of Sale

Law360, New York (September 27, 2012, 7:56 PM EDT) -- Cash-strapped Metro Fuel Oil Corp. entered court protection Thursday in New York to avoid a possible “fire sale liquidation,” with the Brooklyn-based fuel supplier seeking approval of $10 million in debtor-in-possession financing aimed at preserving its value ahead of an anticipated Chapter 11 sale.

A warm winter and construction costs of a biodiesel processing plant left the family-owned energy company facing a liquidity crisis, which was made worse when lenders accelerated its debt obligations following an $18.5 million overdraft and “swept substantially all of Metro’s cash...
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