Aegean Marine Petroleum Network is preparing to file for chapter 11 in New York as early as next week, sources familiar with the matter said. The Piraeus, Greece-based shipping company faces a $94.6 million 4% convertible notes
maturity on Nov. 1, and Swiss commodity trading house Mercuria is set to provide debtor-in-possession financing, according to sources.
The parties are still in discussions to address the Nov. 1 maturity, and the company may strike a deal with the creditors out of court as the situation is still in flux, the sources said.
Aegean Marine, which has more than $1 billion in debt, has been affected by a $200 million receivables write-off and failure to file its 2017 financials, which roiled its notes and shares earlier this year.
Mercuria
provided the company $1 billion in revolving credit facilities in August in exchange for 30% of Aegean common shares and a board seat to Mercuria’s Global Head of Structuring and Origination David Gallagher. Mercuria became the sole lender under the global and U.S. revolvers, which indicates that the original revolvers with Dutch bank ABN AMRO as agent were likely refinanced out.
The 2018 notes were traded on a small scale at 87 on Oct. 23, and the 2021 notes traded in large amount at 65 in September. The stock edged down 6 cents to 95 cents as of 10:52 a.m. ET in New York.
Moelis and Kirkland are advising Aegean, and Milbank Tweed is advising Mercuria. FTI Consulting is advising the agent to both the original $750 million global revolver and a $250 million U.S. revolving credit facility. Willkie Farr is advising agent to the U.S. facility, and Allen Overy is representing the global instrument. A group of convertible bondholders engaged PJT Partners and Akin Gump.
Aegean declined to comment. Mercuria did not respond to a request for comment.