Retail convenience stores and wholesale gas distribution. $450 million sales. $100 million debt. 257 convenience stores (C-Stores) in IN, KY and IL. Operated under Marathon brand dealers in IN and BP dealers in KY and OH. The Company transported a combined 193 million gallons of petroleum products via own fleet to its 257 C-Stores. The Company employed 1,545 hourly and 274 salary employees.
- The Company was operating at a cash flow loss and had no debt coverage.
- Vendors where shutting off credit and Kiel was behind in tax payments.
- Certain C-Stores where losing significant profit and leases were causing a further drain on cash.
- The Company was forced to file Chapter 11 protection and was in dispute with Primary secured lender.
- Bank was in dispute with hired Investment banker and was not comfortable with proposed plan and DIP facility.
- Bank was moving towards a liquidation scenario based on disputed data from The Company.
- MorrisAnderson was retained by Bank to facilitate data flow and analysis from the Company and Investment Banker.
- Evaluated profitability by C-Store and recommend closing of losers.
- Bridge and improve gap between the Company and Bank.
- Prepare cost benefit analysis and liquidation proposal contingencies.
- Be prepared to step in as management in case of negative results from 363 sale.
- Vali progress and facilitate operating reporting through Bank.
- Recommend jointly with the Company the closing of over 50 C-Stores and rejection of leases.
- Recommend sales of idle equipment and land.
- Facilitated negotiating of DIP facility and approval by UCC.