SMF Energy Corp. (FUEL: Quote) said the company and its subsidiaries, H & W Petroleum Company, Inc., SMF Services, Inc., and Streicher Realty, Inc., have filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of Florida. The companies will operate as "debtors in possession" under the jurisdiction of the Court, and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Court.
On April 13, SMF Energy received a declaration from Wells Fargo Bank, N.A., the companies' principal lender, of various Events of Default, as defined in the Loan and Security Agreement dated September 26, 2002, as amended, among the Companies and the Lender. The principal lender also purported to revoke the authority of SMF Energy to access its own collections of accounts receivable and declared the principal lender's intention not to make any further revolving Loans to SMF Energy under the Loan Agreement.
Without considering any penalties or additional charges resulting from the principal lender's declaration of the Events of Default, the current balance owed to the the principal lender under the Loan Agreement is approximately $11.2 million, consisting of around $8 million in revolving loans, a $2.2 million unpaid balance of a Term Loan, and a $1.0 million mortgage loan.
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by RTT Staff Writer
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