Gas City Sale Marches On
Judge OKs sale of bankrupt chain's 51 Chicago-area stations
FRANKFORT, Ill. -- While it is still to be determined how the proceeds will be allocated among 17 Chicago-area banks that collectively are owed $365 million, U.S. Bankruptcy Judge Eugene Wedoff issued an order to sell the 51 gas stations operated by Frankfort, Ill.-based Gas City Ltd., the bankrupt Chicago-area chain owned by William McEnery.
As reported in a Morgan Keegan/CSP Daily News Flash on Friday, citing Crain's Chicago Business, said that the sale is scheduled for early March. Bids are due February 22 and an auction is scheduled for March 2.
In [image-nocss] addition, unsecured creditors are pushing to receive part of the proceeds.
Bids will be accepted for part or all of the stations, many of which are in the south suburbs of Chicago, and some of which are in northwest Indiana, Arizona and Florida.
Gas City filed for Chapter 11 bankruptcy protection October 28, 2010, citing more than 1,000 creditors. (Click here for previous CSP Daily News coverage of Gas City's bankruptcy.)
According to court documents obtained by CSP Daily News, Gas City is offering to sell all its assets, together or separately, to one or more bidders.
All sites will be sold "as is, where is," and all bids must, among other things, be all-cash bids and accompanied with a check or wire transfer for an amount equal to 10% of the first $50 million offered, plus an additional 5% of the proposed purchase price in excess of $50 million as a minimum good-faith deposit.
A court hearing to consider approval of the sale to the successful bidder will be held on March 10.
Gas City is a family-owned and -operated petroleum marketer and convenience store chain with 51 locations (including nine Steel City truckstops) in northeast Illinois, northwest Indiana, Florida and Arizona. The company was founded in Chicago in 1966 with one c-store by current president William J. McEnery.