Document Type

Article

Publication Date

Spring 2010

Abstract

When Appalachian Oil Company, Inc. filed for Chapter 11 protection on February 9, 2009, it marked the end of an era for a company with more than eighty-six years of experience in the petroleum products industry. The company’s failure was attributable to a couple of factors, including the worst financial crisis since the Great Depression and a parasitic parent company. The combination of a lack of operating income and access to credit rendered the company insolvent and unable to continue its operations. Appalachian Oil Company, Inc.’s journey through Chapter 11, however, was unique in that it never reemerged; rather, the company used the forum for liquidation in lieu of reorganizing or converting the case to one under Chapter 7. This case study investigates and chronicles the factors that induced Appalachian Oil Company, Inc. to file a Chapter 11 petition, the road through Chapter 11 to its eventual liquidation, and the effects of the process on the present-day company.

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