One of the four investors in CSLM includes Bachan Signh, a first cousin once removed of Bulk Petroleum principal and owner Darshan Dhaliwal, according to the documents.
The 63 sites purchased include 24 stores in Kentucky, 15 stores in Iowa, 15 stores in Indiana, seven stores in Michigan and one store each in Illinois and Missouri.[image-nocss]
Bulk Petroleum is expected to continue to supply gasoline to a majority of the sold sites.
Other buyers approved by the court include: KMT Inc., which bought one store in Evansville, Ind., for $668,729. PSR Petro Mart Inc., which bought a store in Rock Island, Ill., for $425,000. Star Fuels LLC, which bought one store in Paducah, Ky., for $817,216. T. Minimart Inc., which bought one store in Evansville, Ind., for $792,332. VIP Petroleum Inc., which bought one store in Edinburgh, Ind., for $710,000. About 45 qualified bidders were present at the auction of the stores on February 17, according to court documents. Other bidders of various numbers of stores included TAM Investments LLC, B Kwik Food Mart Inc., Shalimar Investments and Mayco Acquisitions.The majority of the properties were sold in a portfolio purchase, which was approved by the U.S. Bankruptcy Court on May 7, 2010. The transaction closed in mid-June. The other eight locations were sold as individual, one-off sales, according to Hilco Real Estate and its partner on this transaction, The NNN Pro Group, a division of Marcus & Millichap Real Estate Investment Services, which handled the sale.
Bulk Petroleum, which filed for Chapter 11 bankruptcy protection in February 2009, proposed a reorganization that includes selling more than 100 gas stations with proceeds paying a portion of the debts. The company operated and supplies fuel to approximately 350 to 400 locations in Wisconsin, Iowa, Illinois, Indiana, Kansas, Kentucky, Michigan, Missouri and Tennessee.
(Click here for previous CSP Daily News coverage of Bulk Petroleum.)
As reported in a Morgan Keegan/CSP Daily News Flash yesterday, a total of 53 other locations, comprised of operating stations, closed stations and land sites, remain available for purchase.
Glen Kunofsky, senior vice president at Marcus & Millichap, said, "The balance of the Bulk Petroleum portfolio provides a potential buyer or buyers with an opportunity to establish a strategic presence in important U.S. markets. We are confident the remaining properties will be sold quickly."An offering memorandum and comprehensive due diligence information for the remaining properties is available online atwww.hilcorealestate.com/bulkpetroleum or by calling call (847) 313-4790.
Hilco Real Estate helps businesses improve leverage and cash flow by repositioning and restructuring their real-estate commitments. Core competencies include strategic advisory and consulting services, owned portfolio disposition, lease portfolio sales/assignments, lease termination, lease renegotiation, leasing/subleasing, sale of noncore owned assets, sale/leaseback transactions and fee and appraisals for leased and owned assets. The company, which is headquartered in Northbrook, Ill., is a division of The Hilco Organization.
Headquartered in Encino, Calif., Marcus & Millichap's Net Leased Properties Group specializes in providing advisory and transaction services for all types of single-tenant properties.
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