STATE COLLEGE, Pa. -- Bidding for the 283 Uni-Marts LLC stores in three states is expected to open later this month after the State College, Pa.-based company filed documents in bankruptcy court late last week seeking the approval of the bid procedures and naming a stalking-horse bidder—Atlantis Petroleum LLC, according to court documents.
As the stalking horse, Wayne, Pa.-based Atlantis Petroleum will be allowed to make an initial bid for the Uni-Mart properties and also will be allowed bidding protections, as approved by the court. A court hearing on those protections and the bid [image-nocss] procedures is scheduled for Friday, June 27, in Delaware Bankruptcy Court.
According to the yet-to-be-approved motion by Uni-Marts, bids will be accepted through 4:00 p.m. Wednesday, July 30. In the event qualified bids are received in addition to the stalking-horse purchase agreement, an auction will be held Tuesday, August 5, to select the final buyer.
The bidding process is being overseen by Matrix Capital Markets Group LLC, Richmond, Va., which was hired in September 2007 to market Uni-Marts for sale on a “whole-company” basis. Since that time, several investors have expressed interest in buying the company 's stores.
"There has been significant interest in Uni-Marts among potential strategic buyers," Thomas Kelso, managing director of Matrix said in May. "Uni-Marts is well known in the industry as a solid performer, and the business will fit nicely into other existing chains. A bankruptcy sale creates a real opportunity for the right buyer."
Kelso said Atlantic Petroleum rose from that process as a promising bidder and subsequently was named the stalking horse. “We believe that they would be an ideal buyer for this company, and they certainly have the capability and the financial wherewithal to do this,” Kelso told CSP Daily News. “We believe that they are an excellent stalking horse for this [process].”
According to its website, Atlantis Petroleum is a Getty/LUKOIL distributor for the Mid-Atlantic and Northeast United States. The company also operates and supplies stations throughout the region. Its locations and those of its partners are in Pennsylvania, New York, New Jersey and Maryland. Calls to Atlantis for more information were not returned by press time.
Uni-Marts filed for Chapter 11 bankruptcy protection in late May, citing the economy and aggressive competition as key factors.
“Increased fuel and other inventory prices and other matters outside our control have reduced the company's cash reserves, which prevented us from executing our business plans and tightened our operating margins," said Henry Sahakian, Uni-Marts founder and CEO. "Additionally in January 2007, certain dealer/operators sued the company related to Uni-Marts' sale of certain stores to the dealers. While we do not believe the company committed any wrongdoing, we agreed to settle the matter in November 2007 in order to avoid further litigation costs. The costs of defending and settling the litigation substantially reduced our cash reserves."
In court documents, the company claimed between 200 and 999 creditors owed between $10 million and $50 million. The company's four largest creditors include its major suppliers, including $8.5 million owed to BP Products North America, $5.3 million owed to Exxon Mobil Corp., $5.1 million owed to Petroleum Products Corp. and $4.6 million owed to McLane Co.
The retailer operates a network of 283 company and dealer-operated convenience stores and gas stations in Pennsylvania, New York and Ohio. The company is continuing to operate its stores and service its customers without interruption during the reorganization.
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