The judge in the Mountain Express Oil bankruptcy case today asked convenience stores and fuel retailers to contact Trustee Janet Northrup with requests related to fuel deliveries or contract issues with the fuel distributor and convenience-store chain.
Judge David Jones of U.S. Bankruptcy Court for the Southern District of Texas Houston Division discouraged other companies from filing motions requesting permission to purchase fuel from other companies without first contacting Northrup.
On Aug. 19, the court granted creditor Fox Fuels Retail Group permission to purchase fuel from other companies through Sept. 1, at which point another hearing is scheduled. Previously, the court had issued a stay, which held them to their contracts with Mountain Express Oil, but several said Mountain Express Oil had stopped delivering fuel to them.
“For those who are filing you-too motions, I don’t mind, but you don’t schedule anything on my docket without talking. Common sense, common courtesy, pick up the phone and call the trustee,” said Judge Jones said during a noon hearing today.
On Aug. 17, U.S. Trustee Kevin Epstein appointed experienced bankruptcy attorney Janet Northrup of Houston law firm Hughes Watters Askanase to be the Chapter 11 trustee for Mountain Express Oil. The company filed for Chapter 11 bankruptcy protection in March.
While Alpharetta, Georgia-based Mountain Express Oil Co. had hoped to sell the company this summer, talks with Richmond, Virginia-based convenience-store company GPM Investments or other bidders haven’t progressed.
- GPM Investments, a unit of Arko Corp., is No. 6 on CSP’s 2023 Top 202 ranking of convenience-store chains by store count. Mountain Express Oil Co. is No. 50
Today’s hearing, requested by John Melko, an attorney at Foley & Larder LLP representing SASS Petroleum, was continued until noon Wednesday.
In his filing with the court, Melko included a diagram of fuel payment and credit card processing, which he referred to during today’s hearing. At the bottom of the payment flow chart Melko presented, it said, “Excess credit-card receipts, wholesaler pays dealer” and “Monies available to purchase fuel and pay for other obligations.”
Another filing with the court included a cash collateral budget for Mountain Express Oil. It showed a forecast of the company’s net cash flow for August 25 at minus $4.8 million. As of Sept. 1, the cash flow forecast is minus $3.6 million. If the company were to receive $3.5 million in incremental funding for operations, it would have a positive cash balance, as shown on this document.
The budget also included restructuring fees, including Chapter 11 trustee fees, of minus $294,000 for each week.
In a separate legal filing, restructuring firm Axinn, Veltrop & Harkrider LLP requested payment of $3,644 for services rendered. The court has approved payments for legal services rendered of over $4.7 million.
Mountain Express Oil hasn’t responded to CSP Daily News’ requests for comment. The court docket documents pertaining to Mountain Express Oil Co. are available at http://www.kccllc.net/mountainexpressoil.