Metro Fuel Oil Corp

Metro Fuel Oil Corp logo

Summary

Investment Banker
Metro Fuel Oil Corp (Metro) was a family-owned energy company that supplied and delivered bioheat, biodiesel, heating oil, ultra low sulfur diesel fuel (ULSD), natural gas and gasoline throughout the New York Metropolitan area and Long Island from terminals in Greenpoint, Brooklyn and Calverton, Long Island.

Carl Marks Advisors (CMA) served as the exclusive investment banker for Metro during its Chapter 11 bankruptcy. At the time, Metro was constructing a state-of-the-art biodiesel facility with a target capacity of 110 million gallons per year, designed to process diverse feedstocks such as soy, canola, and recycled oils.

CMA led the sale process, marketing the partially-completed facility, intellectual property, and fuel distribution terminals to strategic and financial investors. Despite starting the auction without a stalking horse bid, CMA orchestrated a competitive bidding process, ultimately selling the assets, including the facility, to United Refining Company. Once completed, the facility will be one of the largest biodiesel production sites on the East Coast.

Engagement Highlights

  • At the time of its bankruptcy filing, the Company was still in the process of building one of the largest, state-of-the-art advanced biodiesel production facilities in North America, with a target production capacity of 110 million gallons per year.  Following construction, the biodiesel production facility would be capable of supplying biodiesel derived from the widest range of sustainable, high-energy-balance sources including, domestically-grown soy, canola, recycled restaurant grease, used vegetable oil and algae.
  • CMA professionals led the sale process for the Company and marketed the partially-complete biodiesel production facility, related intellectual property, and fuel distribution terminals, to a wide range of strategic and financial investors. 
  • CMA was able to orchestrate a competitive auction process with multiple bidders and multiple rounds of bidding for the various assets of the Company, despite the fact that the auction commenced without a stalking horse in hand.
  • Ultimately, the state-of-the-art, partially-constructed facility, along with the balance of the Debtor’s assets were successfully sold to United Refining Company.  When complete, the facility will be able to process a variety of feedstocks and be one of the largest biodiesel facilities on the east coast.

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