Jump Oil Bankruptcy Triggers Sale

Missouri retailer putting 47 stations, more on the block

JEFFERSON CITY, Mo. -- In accordance with the company's Chapter 11 case in the U.S. Bankruptcy Court for the Eastern District of Missouri, Jump Oil Co. Inc., a petroleum marketing and convenience store company based in Jefferson City, Mo., is offering to sell its chain of 47 gas stations and convenience stores and one other retail location, the related dealer leases and fuel supply agreements and five unimproved parcels of real estate.

All of the assets are located in Missouri; 17 of the stores are currently closed, but buyers can reopened them or sell them as alternate-use real estate.

Forty-one of the stores are owned, and seven are leased from third-party landlords; 30 of the stores are currently operated by dealers who pay rent to the company and purchase fuel from the company at a specified markup over rack price. The dealer agreements can potentially be terminated by the debtor at the closing if the buyers wish to company operate those locations, or the agreements can be assigned to the successful buyers if they wish to continue to lease the sites to the dealers and supply fuel to the locations. One site is currently leased to a tenant that operates a TitleMax retail location. Five additional parcels of unimproved real estate can be purchased for commercial development.

The company is a Phillips 66 and Shell jobber; 24 of the locations currently sell Conoco or Phillips 66 branded motor fuels, five sell Shell branded motor fuels and one sells Sinclair branded motor fuels. There are no future branding requirements as conditions of this sale process.

The company filed for bankruptcy on Feb. 14, 2013, listing assets and liabilities between $10 million and $50 million.

As reported Monday in a Raymond James/CSP Daily News Flash, Richmond, Va.-based Matrix Capital Markets Group Inc. is managing the structured sale process for Jump Oil. Bids may be submitted for individual assets, multiple assets or all of the assets. The assets are being sold free and clear of all liens, claims and encumbrances. Bids are due May 17, 2013.

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