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FORT MYERS, Fla. -- Florida Petroleum won an auction for the assets of Naples, Fla.-based Chevron distributor Evans Oil with a $15.75 million bid last week, according to a news-press.com report. It beat out a $15.55 million bid from Charlotte, N.C.-based Great Lakes Petroleum.
Both bidding companies offered to assume more than $4 million in financial obligations for Evans Oil, which filed for Chapter 11 bankruptcy in 2011. The deal is expected to be finalized by Sept. 13, until which time Evans will continue to operate normally.
"I have had conversations with them and my understanding is that Florida Petroleum wants to continue operations in Naples, where the Evans Oil facility is currently located," said Soneet Kapila, court-appointed facilitator for the auction, of Florida Petroleum's owners.
Evans Oil will enter negotiations with Great Lakes Petroleum if the current deal falls through, according to the report. "They are considered a backup bidder to Florida Petroleum," Kapila added.
Formed in 1959, Evans Oil distributes bulk oil, gas, diesel and other petroleum products to customers that include gas stations, convenience stores, marinas, golf courses, car dealerships and school districts.
The company transported more than 50 million gallons and earned $3.5 million before interest, taxes, depreciation and amortization in 2010, reported Bloomberg, but it owed more than $35 million to Fifth Third Bank when it filed for bankruptcy.