McALLEN, Texas --Susser Petroleum Property Co. LLC has emerged as the lead bidder in an auction for the assets--including 28 Quick Stop convenience stores in Texas--of Aziz Convenience Stores LLC, according to court documents.
Aziz, the debtor and debtor-in-possession, filed for a voluntary petition for relief and a motion for an auction under chapter 11 of the U.S. bankruptcy code in the U.S. Bankruptcy Court for the Southern District of Texas, McAllen Division on Aug. 4, 2014.
Susser Petroleum Property is now part of Houston-based Sunoco LP following the acquisition of Susser by Sunoco's parent, Energy Transfer Partners LP (ETP), Dallas.
Aziz and Susser Petroleum Property entered into a purchase and sale agreement on April 30.
Aziz operates 28 Quick Stop gas station and convenience stores in Hidalgo County, Texas, employing more than 175 people. The locations sell fuel under the Valero brand, making it one of the largest unbranded c-store chains in the state, according to the court documents.
It opened its first store in 1984. The debtor owns the real property on which the stores are located, although eight of the stores are owned by related limited partnerships controlled by the debtor’s equity interest owners.
After borrowing more than $28 million to finance expansion, Aziz began having trouble making payments, and the bank foreclosed on it.
"In order to avoid the loss of its stores and preserve the value of its business for its creditors, customers and employees, the debtor sought chapter 11 protection," said the court documents.
Aziz then sought permission from the court to sell all of its assets to Susser Petroleum Property Co. LLC (now part of Sunoco LP following the acquisition of Susser by Sunoco's parent Energy Transfer Partners LP (ETP) as the "proposed purchaser," which has agreed to serve as the stalking horse bidder. The deal includes a breakup fee of $840,000.
In late January, the court approved Keen-Summit Capital Partners LLC, New York, to market Aziz's assets for sale or refinancing, for $28 million and an inventory payment. Aziz will conduct the sale through a competitive bidding process "to ensure that the debtor’s estate realizes the maximum value for the assets. The assets shall be sold in the aggregate to one or more purchasers, as may be determined by the debtor in its business judgment."
Potential bidders have until July 15 to submit a qualifying bid. The auction is scheduled for July 20.
Sunoco LP is a master limited partnership (MLP) that primarily distributes motor fuel to convenience stores, independent dealers, commercial customers and distributors. It also operates more than 150 convenience stores and retail fuel sites. The company conducts its business through wholly owned subsidiaries, as well as through its 31.58% interest in Sunoco LLC, in partnership with an affiliate of its parent company, ETP. While primarily engaged in natural gas, natural gas liquids, crude oil and refined products transportation, ETP also operates a retail and fuel distribution business through its interest in Sunoco LLC, as well as wholly owned subsidiaries, Sunoco Inc. and Stripes LLC, which operate approximately 1,100 convenience stores and retail fuel sites.
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