New York-listed Aegean Marine Petroleum Network has had its reorganisation plan confirmed.
The US bankruptcy court for the southern district of New York approved the scheme, subject to minor modifications.
This paves the way for the company to emerge from Chapter 11 restructuring next week as a wholly-owned subsidiary of Mercuria Energy Group, it said.
Aegean has reached a global settlement with its various creditor groups, including Mercuria, the official committee of unsecured creditors, American Express Travel Related Services and certain holders of its unsecured convertible notes.
“The court’s confirmation of the plan is the culmination of a comprehensive restructuring of the company’s operations and capital structure that positions the business to excel under Mercuria’s ownership," said director Tyler Baron.
"This successful stabilisation of the business would not have been possible but for the dedication of the leadership and employees of Aegean.”
He added: “With the support of Mercuria and our creditors, Aegean will emerge from the Chapter 11 restructuring significantly deleveraged, having reduced its funded debt by approximately 80%.
"Under Mercuria’s ownership, we will also have greater liquidity and supply capabilities than ever before and can serve our customers with a much broader suite of services."
Fraud revealed
Aegean revealed potential fraud at the company last year.
It said up to $300m of its assets were funnelled to OilTank Engineering & Consulting after a 2010 deal to build an oil terminal in Fujairah.
And it alleged $200m in accounts receivable were to be written off as non-collectable.
Auditors said those transactions, with shell companies, were carried out to obscure misappropriations to OilTank.
Chairman Donald Moore said: “The page has finally and conclusively been turned on the company’s past issues and their resultant challenges, with all eyes now on the substantial long-term opportunities ahead.
"We are very pleased to have taken the necessary actions to save Aegean and, in an expedited manner, restore a key player in the global market and position it for long-term success.”
Chapter 11 proceedings started in November. Operations have continued as normal.
TradeWinds reported last month that changes had been made to the plan.
"After we filed our objection, [Aegean] revised the plan to essentially carve out our claims from the release," said Michael Etkin of Lowenstein Sandler, Utah Retirement Systems, the lead plaintiff in the fraud lawsuit.
"In terms of the opt-out, the judge has directed the debtor to change it from an opt-out to an opt-in."
The pension plan is seeking to recover damages from the officers' alleged insider trading and related-party dealing.
