Petroleum Distributor Declares Bankruptcy

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Petroleum Distributor Declares Bankruptcy

08/01/2005
STILLWATER, Ohio -- Laurel Valley Oil Co., a marketer and distributor of petroleum products based in Uhrichsville, Ohio, has been forced into involuntary bankruptcy by three creditors that claim the family-owned petroleum business owes them more than $11 million, according to The Times-Reporter(Dover-New Philadelphia, Ohio).

The Chapter 11 bankruptcy was filed in the U.S. Bankruptcy Court for the Northern District of Ohio at Canton by petitioning creditors Julian W. Perkins Inc. of Elyria, Truck World Inc. of Hubbard and Marathon Ashland Petroleum LLC of Findlay.

According to the filing, Laurel Valley Oil owes Marathon Ashland Petroleum $6,376,855 for product sold. (Marathon Ashland Petroleum, a subsidiary of Marathon Oil Corp., will change its name to Marathon Petroleum Company LLC [MPC] effective Sept. 1, 2005.)

Perkins is owed $4 million -- in excess of $3.8 million for prepaid fuel not delivered and $100,000 in past due invoices for lubricant sales -- according to court records. Truck World is owed $1,139,190 for prepaid fuel that was not delivered.

Laurel Valley Oil Co. recently abruptly closed two of its 76 gasoline stations, one at Uhrichsville and the other at Freeport.