Getty Petroleum Marketing Inc. Announces Restructuring

EAST MEADOW, N.Y., Nov. 16 /PRNewswire/ -- Getty Petroleum Marketing Inc. (Getty) announced today the restructuring of its business as part of its ongoing efforts to rationalize assets, eliminate parent-guaranteed debt and reduce operating costs. Under the restructuring, Getty has sold all assets unrelated to the 890 properties leased from Getty Realty Corp. Getty also announced additional steps to manage costs including closing two marketing regions, eliminating 194 jobs and exiting the direct-supplied retail gasoline business.

In September 2009, Getty sold assets and inventory related to its blending and supply to LUKOIL Pan Americas L.L.C. for $25.4 million dollars. Divesting this capital-intensive unit, which blended and traded physical product, relieves Getty of significant parent guaranteed short-term debt obligations. LUKOIL Pan Americas L.L.C. trading operations are unrelated to Getty.

Today, Getty completed the sale of 164 branded service station properties, contracts to supply approximately 339 other stations and other assets, including its home heating oil and propane gas company, to LUKOIL North America LLC (LNA), for $195.5 million dollars. The assets sold are unrelated to the properties leased from Getty Realty Corp. Getty is using the sale proceeds to pay off parent guaranteed long-term borrowings. Vadim Gluzman, CEO of LNA, stated, "LNA is expected to be the vehicle through which Lukoil will concentrate its future growth in the United States."

Houlihan Lokey provided financial advice and Akin Gump Strauss Hauer & Feld LLP provided legal advice on the transaction.

SOURCE Getty Petroleum Marketing Inc.