Mountain Express Oil Co. has filed for voluntary protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of Texas. The fuel distribution and convenience-store retailer intends to achieve a comprehensive restructuring, and it expects to continue to conduct business throughout the process. Mountain Express-owned or affiliated fuel centers, travel centers, c-stores and retail operations are maintaining normal operations, it said.
A restructuring “will strengthen the company’s fuel distribution business, dealer network and retail business,” it said. Mountain Express is in discussions with its secured lenders regarding a commitment of debtor-in-possession financing, which it said will provide additional liquidity and “assure its ability to meet its post-petition obligations in the ordinary course of business.”
To help fund and protect its operations, Mountain Express intends to use cash collateral, upon approval from the court, along with normal operating cash flows, as the company pursues the “value-maximizing” restructuring and seeks to emerge from bankruptcy in a timely manner.
“Through this process, Mountain Express will continue to transform the business for the future while bolstering our financial position,” said Turjo Wadud, CEO of Mountain Express, Alpharetta, Georgia. “I am confident in the strength of our business and our team and look forward to achieving a comprehensive resolution that will best position Mountain Express for long-term success. We continue to have a robust pipeline and will continue to provide opportunities for our dealers, partners and employees. During this process, we intend to maintain the underlying durability of our business as well as our strong relationships in the industry.”
Mountain Express has filed motions with the court to allow the company to maintain operations in the ordinary course of business including, but not limited to, paying employees and continuing existing benefits programs, upholding commitments under its dealer and retail agreements and fulfilling go-forward obligations including fuel supplier and other vendor payments.
Pachulski Stang Ziehl & Jones LLP, Los Angeles, is serving as counsel, Raymond James & Associates Inc., St. Petersburg, Florida, is serving as investment banker and FTI Consulting Inc., Washington, is serving as restructuring advisor to Mountain Express. Michael Healy of FTI Consulting has been appointed chief restructuring officer.
- Mountain Express Oil is No. 75 in CSP’s 2022 Top 202 ranking of U.S. convenience-store chains by number of company-owned and -operated retail outlets.
Founded in 2000, Mountain Express Oil serves 828 fueling centers and 27 travel centers across 27 states. It has established relationships with major oil companies including ExxonMobil, BP, Shell, Chevron, Texaco and Sunoco, among other major suppliers. Mountain Express also has a dealer joint venture with Pilot Co., Knoxville, Tennessee Since 2013, Mountain Express has distributed more than 1.1 billion gallons of fuel, it said.
In 2021, Mountain Express completed a $205 million debt financing, which the company said it will use to refinance its existing credit facilities and to support its growth objectives. Later in the year, it acquired Brothers Food Mart, New Orleans, with 50 locations. It also acquired 24 retail locations and the wholesale fuel assets of Texon Oil Inc., Medford, New Jersey. And in 2022, Mountain Express purchased the 26-unit The Store c-store brand from Team Schierl Cos., Stevens Point, Wisconsin.
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