Metro Fuel Oil gets court approval of bid procedures for asset sale

By Lisa Kerner

Charlotte, N.C., Oct. 23 - Metro Fuel Oil Corp. was granted court approval of the bid procedures for the proposed sale of its assets by the U.S. Bankruptcy Court for the Eastern District of New York on Tuesday, according to an attorney familiar with the case.

A consensual order was submitted and will be entered soon, the attorney said.

As previously reported, as required by the terms of its debtor-in-possession facility Metro Fuel plans to complete a sale of its assets, whether on a going-concern basis to a single bidder or in parts to multiple bidders, within 90 days of the bankruptcy filing date.

While Metro Fuel Oil has not entered into a stalking horse bid, it said it is "cautiously optimistic" that it will do so and would pay that bidder 3% of the proposed purchase price if it is not the high bidder at auction.

Under the proposed procedures, preliminary bids are due by 4 p.m. ET on Oct. 31. Specifically, parties must submit the documents required for participation in the auction by this deadline.

All binding bids are due by 4 p.m. ET on Dec. 6. The auction will be held on Dec. 11, and the sale hearing is scheduled for Dec. 13.

Metro Fuel is a Brooklyn, N.Y.-based energy company that supplies bioheat, biodiesel, heating oil, central air conditioning units, ultra low sulfur diesel fuel, natural gas and gasoline throughout the New York City metropolitan area and Long Island. The company filed for bankruptcy on Sept. 27 under Chapter 11 case number 12-46913.

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