Heating Oil Partners seeks Canadian court approval of reorganization plan

By Caroline Salls

Pittsburgh, June 21 - Heating Oil Partners, LP and debtors Heating Oil Partners G.P., Inc. and HOP Holdings, Inc. have filed for approval of their plan of reorganization under the Companies' Creditors Arrangement Act with the Ontario Superior Court of Justice, according to a company news release.

The U.S. Bankruptcy Court for the District of Connecticut confirmed the company's first amended joint plan of reorganization on June 15.

To further the confirmation order, the company will be seeking an order under the CCAA recognizing and implementing the confirmation order in Canada.

A hearing is scheduled for June 26.

The company will also seek Canadian court approval to file an assignment in bankruptcy under the Bankruptcy and Insolvency Act.

Under the reorganization plan, 100% of the equity of the company will be distributed to its pre-bankruptcy secured lenders, which will result in the company becoming private.

This group of new equity holders will also provide an $8 million equity infusion following the company's emergence from Chapter 11.

Holders of unsecured claims will be entitled to receive their share of a cash distribution from a $525,000 settlement pool.

Current equity holders will receive no distribution.

Residential heating oil distributor Heating Oil Partners filed for Chapter 11 on Sept. 26, 2005 in the U.S. Bankruptcy Court for the District of Connecticut. Its case number is 05-51271. It is the operating subsidiary of Toronto-based Heating Oil Partners Income Fund, which filed in Canada under the Companies' Creditors Arrangement Act.

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