Associated Asphalt Hopewell, LLC acquired substantially all assets of Regional Enterprises, Inc. from Central Energy Partners, L.P. for $5 million.
November 30, 2015 at 04:00 am
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Associated Asphalt Hopewell, LLC entered into an agreement to acquire substantially all assets of Regional Enterprises, Inc. from Central Energy Partners, L.P. (OTCPK:ENGY) for $5 million in cash on November 20, 2015. As per the terms of the agreement, $0.58 million of the consideration was deposited in an indemnity escrow account, some portion was used to pay obligations of Regional and the remaining $0.36 million will be transferred to Central Energy as partial satisfaction of the Intercompany Demand Promissory Note between Regional and Central Energy dated March 1, 2012. The consideration is subject to certain adjustments. Ian T. Bothwell, President of Regional and as a Senior Vice President of Central Energy GP LLC resigned from his post. The transaction has been approved by the majority holding shareholders of Central Energy Partners and Board of Directors of Central Energy Partners. The proceeds from the sale will be used to repair Tank 110 and to make principal and interest payments due on the loan by Hopewell Investment Partners LLC to Regional in March 2013. W. Phillip Whitcomb of Munsch Hardt Kopf & Harr, P.C. acted as legal advisor for Central Energy GP, LLC. David N. Cohan acted as general counsel to Associated Asphalt.
Associated Asphalt Hopewell, LLC completed the acquisition of substantially all assets of Regional Enterprises, Inc. from Central Energy Partners, L.P. (OTCPK:ENGY) on November 20, 2015.
Central Energy Partners LP (Central) provides liquid bulk storage, trans-loading and transportation services for hazardous chemicals and petroleum products. The Company provides its services through its wholly owned subsidiary, Regional Enterprises, Inc. (Regional), which is engaged in the storage, transportation and railcar trans-loading of bulk liquids, including hazardous chemicals and petroleum products owned by its customers. Regional's facilities are located on the James River in Hopewell, Virginia. Regional transports a range of hazardous products, such as aluminum sulfate solution, hydrochloric acid, sulfuric acid, sodium hydroxide, aqua ammonia, sodium bisulfate and fuel blends, and non-hazardous liquid products, such as crude tall oil, No. 2 oil, No. 6 oil, asphalt additives, micro-c and vacuum gas oil. As of December 31, 2014, Regional had a fleet of 15 leased tractors, 5 owned tractors, 36 tanker units and 15 tanks.