Metro Fuel Oil Files for Bankruptcy

Operations are expected to remain unaffected as company makes it through bankruptcy proceedings and reorganizes.

Just over a year after celebrating its grand opening at Enterprise Park at Calverton, Metro Biofuels, its parent company Metro Fuel Oil Corp., and eight other subsidiaries have filed for bankruptcy.

The company said in a statement that the announcement should not affect business as usual, as the United States Bankruptcy Court for the Eastern District of New York granted immediate access to $3 million in financing – in addition to cash generated from its operation – and the company is looking to borrow $10 million while in bankruptcy proceedings.

"We want to be clear about one thing: our doors are open and we are continuing to make deliveries," said Paul Pullo, the company's president. "We are committed to the relationships we have with our customers, vendors and our dedicated employees and are working to find a partnership that will put Metro on solid financial footing and prepare us for the future."

Metro Biofuels opened a biodiesel distribution facility at EPCAL in the fall of 2011, hoping to take advantage of a $3.4 million-rail spur built for Calverton with federal stimulus dollars.

Metro supplies and delivers bioheat, biodiesel, heating fuel, ultra low sulfur diesel fuel, natural gas and gasoline throughout the New York metro area. The use of the rail spur at the new Calverton facility was expected to transport in 100 rail trips what normally takes 2,500 trucks on the LIE.

A spokeswoman said on Monday that, "We are not planning any organizational changes as a result of the filing."

Bloomberg News reported that Merto Fuel Corp. held over $100 million in debt and $50 million in assets at the time of its filing.

The chapter 11 filing was utilized to "ensure the best possible result for all stakeholders ... Metro expects to come out of this process as a stronger company."

Sam Ratkewitch October 02, 2012 at 03:41 PM
Well of couse they filed for bankruptcy, they live for federal stimulus dollars . Just like Solandry. Important for all to know your tax dollars are subsidizing this company's existence. But what about legitimate fuel companies who aren't inefficient and have to work hard to make a profit? How can they compete with these subsidy dependent and unprofitable companies who would have gone out of business if it weren't for the largess of the government? Do business with those companies who can stand on their own merits and ingenuity SR from Jamesport
Art Bichsel October 02, 2012 at 06:28 PM
How's that rail spur working out for ya, hah? Great idea, just poorly executed.
b October 03, 2012 at 06:37 PM
Was this a press release from Metro?
A October 16, 2012 at 04:50 PM
only if people would move the dirt and clear the smoke. they would see what is going on. This is a business that only looks for there own pockets and dont care about any one it steps over. seens all the Big players are working together and keet the little people in the dark.
Antonio Velasquez Jr. November 28, 2012 at 11:04 AM
It is comfirmed to the public at large that metro fuel oil (yes, they are deserving of lower case status) is seeking to borrow 10 million dollars while filing for bankruptcy. It is feasibly logical to detect that such a company has direct influential connections with the principalities of the world. Therefore, what should be rolling on rails is a quantum ample supply of storm barrier materials.
Antonio Velasquez Jr. November 28, 2012 at 11:20 AM
metro fuel oil corp. Should be barred from further damaging and polluting our preciouse enviornment. Planet Earth is the trial stage of continual life. To deliberately attempt to bring about this planets' destruction with their vain and futile belief that they can move on to the next planet without repurcussion, is intellectually impossible.True Leaders in this great planet of ours will maintain vigilant power of authority in accordance with Infallible Rule of Law...and the gates of hell will not prevail.
Antonio Velasquez Jr. November 28, 2012 at 11:47 AM
"Low and Behold"
Antonio Velasquez Jr. November 28, 2012 at 11:51 AM
" Do conduct my case OH JEHOVAH, against my opponents; war against those warring against me".
Joe P December 31, 2012 at 05:24 PM
I disagree I don't believe they've hurt the environment , they provide a product that people need.
frank January 20, 2013 at 06:10 PM
Antonio get a grip there not doing anything wrong to the enviornment.


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