Gas City's $135 million asset sale could stall on lender's objection

By Lisa Kerner

Charlotte, N.C., April 28 - Gas City, Ltd. secured lender First Community Bank of Homer Glen and Lockport filed an emergency motion seeking a 14-day stay of the creamery assets sale closing, according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Illinois.

A hearing is set for April 29.

On April 26 the court approved the sale over the written objections of First Community and other secured lenders.

First Community, with claims in excess of $8 million, said it intends to pursue an appeal of the sale approval.

As previously reported, the court approved the combined $135.01 million sale of Gas City's assets to several bidders.

The company sold 60 of its gas stations, car washes, truck parking stations and vacant lots to 14 different buyers.

The successful bidders included MKM Oil, Inc., First Coast Energy, LLP, Speedway LLC, TravelCenters of America LLC, Alimentation Couche Tard Inc., 7-Eleven, Inc., Angel Associates LP, Riteline Development LLC, Love's Travel Stops & Country Stores, Inc., HomeStar Bank & Trust, National Oil & Gas, Inc., American Petro, Inc., Western Refining Southwest, Inc. and Valero Retail Holdings, Inc.

Gas City, a gas station and truck stop operator based in Frankfort, Ill., filed for bankruptcy on Oct. 26, 2010. The Chapter 11 case number is 10-47879.

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