Crescent Oil Files for Bankruptcy
INDEPENDENCE, Kan. -- Crescent Oil Co. Inc., a fuel supplier to more than 340 gas retailers based here, filed for Chapter 11 bankruptcy protection Saturday in the U.S. Bankruptcy Court in Kansas City, Kan., reported the Kansas City Star.
The filing comes after last week's report that gas stations across six states in the Midwest scrambled to find new fuel suppliers after unexpectedly learning they would no longer be serviced by Crescent Oil, CSNews Online reported Feb. 6. Company officials refused to comment last week, and were unavailable for comment as of press time.
The Chapter 11 filing stated the company has between $50 million and $100 million in estimated assets and a similar amount of estimated liabilities, the Kansas City Star reported. Its largest unsecured creditors include Shell/Equilon and ConocoPhillips, as well as the Kansas Department of Revenue's Motor Fuel Tax Section.
The stations affected by the filing began searching for new suppliers last week, but in some cases, they ran out of fuel, according to the report. Others also posted signs stating they are not taking credit cards, since the payment processing was done by Crescent Oil. New arrangements to take the cards are being put together, the report stated.
Crescent Oil is a subsidiary of Titan Global Holdings, and a sister company of Appalachian Oil Co. (Appco), which also recently has been subject to financial problems.
In early January, liquidity issues caused Appco c-stores to run out of fuel supplies, empty shelves of product and halt the sale of lottery tickets. Appco expected to receive debt refinancing from its parent company, Titan Global, but no confirmation of received financing has been made to date. Last week, CSNews Online reported most of the chain's 55 retail locations were operating on an abbreviated schedule -- closing at 6 p.m. instead of 10 p.m. or midnight.
To read more on Appco's situation, click here.
The filing comes after last week's report that gas stations across six states in the Midwest scrambled to find new fuel suppliers after unexpectedly learning they would no longer be serviced by Crescent Oil, CSNews Online reported Feb. 6. Company officials refused to comment last week, and were unavailable for comment as of press time.
The Chapter 11 filing stated the company has between $50 million and $100 million in estimated assets and a similar amount of estimated liabilities, the Kansas City Star reported. Its largest unsecured creditors include Shell/Equilon and ConocoPhillips, as well as the Kansas Department of Revenue's Motor Fuel Tax Section.
The stations affected by the filing began searching for new suppliers last week, but in some cases, they ran out of fuel, according to the report. Others also posted signs stating they are not taking credit cards, since the payment processing was done by Crescent Oil. New arrangements to take the cards are being put together, the report stated.
Crescent Oil is a subsidiary of Titan Global Holdings, and a sister company of Appalachian Oil Co. (Appco), which also recently has been subject to financial problems.
In early January, liquidity issues caused Appco c-stores to run out of fuel supplies, empty shelves of product and halt the sale of lottery tickets. Appco expected to receive debt refinancing from its parent company, Titan Global, but no confirmation of received financing has been made to date. Last week, CSNews Online reported most of the chain's 55 retail locations were operating on an abbreviated schedule -- closing at 6 p.m. instead of 10 p.m. or midnight.
To read more on Appco's situation, click here.