Mountain Express terminates leases and supply

The company has put an end to fuel agreements and convenience store leases after filing out for bankruptcy.

Mountain Express Oil has officially “rejected and terminated” all of its convenience store leases and existing fuel supply agreements. The company is set to pay its employees several unpaid wages after recently filing for bankruptcy following a filling in the U.S. Bankruptcy Court for the Southern District of Texas.

According to C-Store Dive, the news comes at the same time as Mountain’s licenses for the third-party branding of its individual operating sites have also ended.

This decision comes over one week after the retailer asked permission from the court to cease all operations and terminate its employees after a failed sale proposal of $49 million by Arko Corp.

Mountain Express’ situation changed in the past weeks, as the company originally filed for Chapter 11 bankruptcy. Now, it has been converted to Chapter 7 as it is now liquidating assets. This includes all records and estate property under the firm’s possession, control or custody, alongside any estate cash or other property held in escrow or trust.

Currently, the company’s debtor-in-possession lenders are set to provide $1.5 million for various administrative expenses, covering all unpaid wages for employees. Retailers such as PIlot Company, bp, Chevron, Gulf Oil, Phillips 66 and Marathon Petroleum have concluded their fuel supply contracts with Mountain.