Western Convenience Stores Finally Exit Bankruptcy

by San Antonio Attorney

As a result of meticulous financial reorganization, Western Convenience Stores have finally emerged from bankruptcy.

The partners affiliated with Garrison Investment Group have approved the restructuring plan, along with a credit facility.  This was procured by the businesses and real estate of the affiliating companies.

Western Convenience Stores filed for Chapter 11 bankruptcy last December.  This happened after the creditor filed a claim that the gas station operator recently defaulted on an agreement.  The creditor pushed for a takeover of the 37 gas stations, according to court documents.  However, the company still maintained operations during its period of bankruptcy.

Ken Shriber, the current Chief Executive Officer of Petroleum Equity Group, said that this deal was complicated.  Shriber added that Garrison served as an advisor for its exclusive fuels and convenience stores as a support of its analysis, which became a debt replacement.

There are 43 fee-owned branches in Colorado and Western Nebraska under the supervision of Western Convenience Stores with its own independent gas and its c-store brand.   Majority of these branches are scattered across the major districts in Denver.  Fuel deliveries were also done via Western Truck One.

Filing of bankruptcy under Chapter 11 is intended for the reorganization of the business debts.  Large corporations are often affected.  Chapter 11 provides opportunity for the debtor to create a proposal to generate profit even after bankruptcy filing.

Measures to cut costs and having new sources of revenue and income re also included in the deal.  Chapter 11 bankruptcy is different from Chapter 7 bankruptcy.  Chapter 7 bankruptcy includes the complete closure of the whole property and an auction to sell the assets is done in order to pay the creditors.  Chapter 11 retains the status of the company and has its own advantages such as adequate time to file the plan for reorganization.

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