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JAMAICA | PNP asks if firm that filed for bankruptcy in US owes Petrojam $US 3-million

Featured Opposition Spokesman on Energy, Phillip Paulwell wanys answers to more questions on Petrojam. Opposition Spokesman on Energy, Phillip Paulwell wanys answers to more questions on Petrojam.
KINGSTON, November 7, 2018 -  Opposition Spokesman on Energy, Phillip Paulwell  has sought answers from the Andrew Holness administration about whether the state-owned oil refinery Petrojam is owed more than J$380 million by a Greek fuel-trading company that filed for bankruptcy protection in the United States (US) on Tuesday.

Mr. Paulwell, told Parliament yesterday that his information is that Aegean Marine Petroleum owes Petrojam US$3 million, or approximately J$381 million, and that the debt was unsecured.

Paulwell asked whether "The House leader  could verify if they are aware of this development and to confirm the outstanding amount owed to Petrojam."

Aegean Marine Petroleum Network, one of the world's largest traders of shipping fuel, announced in a statement that it filed voluntary petitions, along with some of its subsidiaries, for relief under Chapter 11 of the US Bankruptcy Code.

According to a statement from Businesswire yesterday, Aegean Marine Petroleum Network Inc.  announced that the Company and certain of its subsidiaries (the “debtors”) filed voluntary petitions for relief under Chapter 11 of the US Bankruptcy Code in the Bankruptcy Court for the Southern District of New York.

The debtors enter this process with the support of Mercuria Energy Group Limited (“Mercuria”), a key strategic partner and one of the world’s largest independent energy and commodity companies. Mercuria has agreed to provide more than $532 million in postpetition financing to fund the chapter 11 process and the Company’s working capital needs. It has also agreed to serve as the stalking horse bidder in a sale process designed to optimize the value of the Company as a going concern. The Company continues to explore value-maximizing alternatives.

The debtors have filed a motion with the bankruptcy court seeking to jointly administer all of the debtors’ Chapter 11 cases under the caption In re Aegean Marine Petroleum Network Inc., et al. The debtors will continue to operate their businesses as “debtors-in-possession” under the jurisdiction of the bankruptcy court and in accordance with the applicable provisions of the US Bankruptcy Code and orders of the bankruptcy court.

The debtors have filed a series of first day motions with the bankruptcy court that seek authorization to continue to conduct their business in the normal course, including in relation to employees, customers and suppliers, among others. The debtors are seeking approval of the Mercuria-led postpetition financing. This financing is designed to ensure the Company has adequate working capital to fund the business and continue ordinary course operations during the Chapter 11 Cases and to fund the sale process.

Paulwell said the developments at Aegean underscore the need for a minister to be appointed to give full attention to the energy portfolio. "It points to the myriad of issues that can arise in the portfolio, and that's why it requires a minister that has particular portfolio responsibility," he asserted.

Andrew Wheatley stepped down as energy minister in July following allegations of nepotism and cronyism at Petrojam.

Two weeks later, Prime Minister Holness announced that he was taking over responsibility for the Ministry of Energy, Science and Technology.

  • Countries: Jamaica

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