Pipeline Co. In Ch. 11 Duel With Texas Creditor, Receiver
San Antonio-based crude oil hauler First River Energy LLC has filed for Chapter 11 bankruptcy.
First River Energy CEO Deborah Kryak filed the company’s petition with San Antonio’s bankruptcy court on Jan. 12. The bankruptcy filing comes less than three weeks after a restructuring deal with the company’s creditors and lenders fell through.
First River Energy’s case has landed before U.S. Bankruptcy Judge Craig Gargotta.
Neither company officials nor their attorneys could be reached for comment on Wednesday afternoon, but court records show that First River Energy listed between $10 million and $50 million in assets and the same amount in liabilities.
Founded in May 2015, the company’s tanker trucks hauled crude oil from remote wells to storage terminals and refineries.
In letter sent out to First River Energy customers on Jan. 4, the company’s former senior marketing manager Edward Vrana wrote that lenders and investors were unable to reach a long-term agreement to restructure the company.
“A decision was made on December 31st to commence the wind down of the company and ongoing operations virtually ceased that day,” Vrana wrote.
In his letter, Vrana wrote that the company was advised to file for Chapter 11 bankruptcy.
“This unfortunate development was completely unanticipated as progress in the negotiations was occurring until the afternoon of the 31st,” Vrana wrote.
First River Energy, LLC (18-50085)
United States Bankruptcy Court, W.D. Texas
This Memorandum Opinion is issued in support of a Certification of a Direct Appeal to the United States Court of Appeals for the Fifth Circuit.
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