According to court documents, Gas City, which filed for Chapter 11 bankruptcy protection on October 28, is seeking about $2.23 million in credit from Bank of America to allow it to continue to operate its 52 stores in four states while it works through bankruptcy.[image-nocss]
Gas City cited more than 1,000 creditors and estimated liabilities of more than $100 million (click here for previous CSP Daily News coverage). Published reports say that debt totals $365 million.
The court on Tuesday also will consider an interim budget through the end of this year to allow Gas City to continue to operate. In the proposed budget, Gas City notes an average weekly "cash inflow" of about $8.6 million and average weekly "operating cash outflow" of about $8.3 million.
Gas City is a Frankfort, Ill.-based, family-owned and -operated petroleum marketer and convenience-store chain with 52 locations (including nine Steel City truckstops) in northeast Illinois, northwest Indiana, Florida and Arizona, according to CSPedia records. The company was founded in Chicago in 1966 with one convenience store by current president William J. McEnery.
According to court documents, Gas City's 10 largest creditors all are lenders, most in the Southeast suburbs of Chicago and in Northwest Indiana. The amounts owed to each range from $3.7 million to $19.5 million. The company also owes $6.3 million to GE Capital Corp., Overland Park, Kan., and $3.6 million to GE Commercial Finance, Scottsdale, Ariz.
Other major debts include $2.2 million owed to Valero Marketing & Supply Co., St. Louis; $2.1 million owed to BP Products North America, Warrenville, Ill., $1.9 million owed to Husky Marketing & Supply Co., Lima, Ohio; and $1.6 million due in country motor fuel taxes to the Illinois Department of Revenue.
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