Metro Fuel Oil Corp. Update: Motion to Convert to Chapter 7
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On January 29th, New York Commercial Bank filed a motion to convert Metro Fuel Oil Corp's Chapter 11 case to a Chapter 7. The Bank is a pre-petition secured lender.
According to the Motion, the Debtor has been unable to secure a stalking horse bidder to buy any of their assets. Even if a sale occurs, the Bank argues, the Debtor will have little or no unencumbered cash.
Since the case was filed, "the Debtors have only burdened the estates with approximately $12 million of priming post-petition debt, loaded the estates with other administrative expenses, and racked up more than $5 million in post-petition losses."
Download the Motion below.
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