SMF Energy Corp. (FUEL) filed for Chapter 11 bankruptcy
protection after its principal lender declared it in default on its
loan agreements.
SMF, which owes about $11.2 million under its loan agreements
with Wells Fargo & Co. (WFC), expects to receive needed
consents to allow it to continue operating parts of its business
that have continuing value as it works through a reorganization
plan.
The provider of mobile and bulk fueling and other services
across a broad range of industries from trucking to
telecommunications also said it expects that it will be required to
sell off assets that aren't considered to have a "going concern"
value. Further details regarding asset sales weren't disclosed.
SMF said it didn't expect that plans unveiled last month to
improve revenue and cut costs would be enough to offset an
anticipated downturn in its financial results any time soon. SMF
said that competitive pressures have prevented it from raising
prices.
Shares closed Friday at 84 cents and were halted in recent
premarket trading. The stock is down roughly 70% this year.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com