Bankrupt Appco Shutters One Store

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Bankrupt Appco Shutters One Store

03/13/2009
GLADE SPING, Va. -- Appalachian Oil Co. (Appco), which filed Chapter 11 bankruptcy last month and is currently going through court proceedings, closed its convenience store here Wednesday after months of struggling to stay in business despite a stagnant credit flow, the Bristol Herald Courier reported.

"We just found out today," said a woman who answered the store’s phone. She preferred to remain anonymous. "We’re just closing now."

The action comes after Monday's court ruling that the company could pay its employees from cash collateral. Also during the hearing, Patricia Foster, the U.S. trustee assigned to the case, noted the assurances from Bryan Chance, CEO of Appco's parent, Titan Global Holding, that "debtor in possession" financing is "days away" is what she's been hearing for a month. She also asked whether Titan was considering selling the stores if the financing didn't come through, according to the report.

"We would entertain that, but I don’t think given the financial climate we're in it would achieve the desired outcome for [secured creditor] Greystone Business Credit or the unsecured creditors," Chance said at the meeting, implying a sale might not bring enough to pay off all Appco's debts.

Appco CEO and President Marty Anderson did not return a call from the paper.