Mountain Express Oil files bankruptcy, in talks on DIP loan

By Sarah Lizee

Olympia, Wash., March 20 – Mountain Express Oil Co. filed Chapter 11 bankruptcy on Saturday in the U.S. Bankruptcy Court for the Southern District of Texas.

The company is seeking court approval to access cash collateral of its prepetition secured lenders, according to a motion filed Monday.

Mountain Express’ prepetition capital structure includes a credit agreement with First Horizon Bank as administrative agent. Currently, there is about $176.5 million outstanding under the credit agreement, including $148.3 million under a term loan and $28.2 million under a revolver. These amounts do not include interest or other costs.

The company defaulted on the credit agreement in December.

Mountain Express said it is in advanced discussions with the prepetition secured lenders regarding a possible debtor-in-possession facility, but no agreement has been reached yet.

The company said access to cash collateral is necessary to preserve its assets and effectuate an orderly reorganization process.

In its petition, the company lists 1,000 to 5,000 creditors, $100 million to $500 million in assets and $100 million to $500 million in liabilities.

Its largest unsecured creditors are Sunoco, based in Newton Square, Pa., with a $1.68 million fuel supply claim, Valero, based in San Antonio, with a $1.67 million fuel supply claim and Coca-Cola Bottling Co., based in Atlanta, with a $1.11 million food and beverage claim.

Pachulski Stang Ziehl & Jones LLP is proposed bankruptcy counsel, and FTI Consulting, Inc. is proposed financial adviser.

The Alpharetta, Ga.-based fuel distributor filed Chapter 11 bankruptcy under case number 23-90147.

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