Getty Petroleum Restructures, Sells Assets

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Getty Petroleum Restructures, Sells Assets

11/16/2009
EAST MEADOW, N.Y. -- Getty Petroleum Marketing Inc. is restructuring its business as part of an ongoing effort to rationalize assets, eliminate parent-guaranteed debt and reduce operating costs, the company stated.

As part of the process, the company is closing two marketing regions, which will eliminate 194 jobs, as well as exiting the direct-supplied retail gasoline business.

Under the restructuring, Getty also sold all assets unrelated to the 890 properties leased from Getty Realty Corp. As part of this move, Getty completed the sale of 164 branded service station properties to LUKOIL North America LLC for $195.5 million dollars. This sale also included contracts to supply approximately 339 other stations and other assets, including its home heating oil and propane gas unit, the company stated. These assets sold are unrelated to the properties leased from Getty Realty Corp.

Getty will use sale proceeds to pay off parent guaranteed long-term borrowings.

Vadim Gluzman, CEO of LUKOIL, said in a statement: "LNA is expected to be the vehicle through which LUKOIL will concentrate its future growth in the United States."

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