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Debt Management Law News

February 16, 2010

Age Refining, Jet-Fuel Producer, Files bankruptcy in San Antonio

Age Refining Inc., a refiner of jet fuel and diesel products, began a bankruptcy reorganization on Feb. 8 in San Antonio, where the refinery is located.

Founded in 1991 by Al Gonzalez, Age’s refinery has an average capacity of 13,500 barrels a day, while the tank farm can store 208,000 barrels.

Debt includes $29.6 million owing on a construction loan where JPMorgan Chase Bank NA serves as agent. The bank is also agent for an undrawn $50 million revolving credit. Letters of credit totaling $26.6 million were undrawn when the Chapter 11 petition was filed.

There is second-lien debt for $10 million. Suppliers of crude oil are owed $22 million, with $6.3 million due other suppliers, a court filing says.

Closely held Age said in a court filing that bankruptcy became necessary when New York-based JPMorgan Chase refused to issue more letters of credit. Without the security granted by letters of credit, suppliers wouldn’t provide crude, Age said.

The Chapter 11 effort is to be provided with a $35 million revolving credit supplied by the existing revolver lenders.

An affiliate of Royal Dutch Shell Plc, owed $10.8 million, is listed as the creditor with the largest unsecured claim. It is unclear from court papers whether Shell holds a letter of credit to cover the obligation.

Age has contracts to supply jet fuel to three U.S. Air Force bases near San Antonio.

The case is In re Age Refining Inc., 10-50501, U.S. Bankruptcy Court, Western District of Texas (San Antonio).

Sometimes, debt can be overwhelming, and bankruptcy becomes necessary.
Bankruptcy can sometimes be difficult. If you are considering bankruptcy, contact the Houston bankruptcy lawyers of Weston & Associates, PLLC at 713-623-4242

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