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."
