Troubled motor oil company files for Chapter 11 bankruptcy

Financial distress has forced some major companies the total way during the automotive industry to file for Chapter Eleven economic ruin this year.

Electric vehicle maker Fisker Group has been the lone automaker to file economic ruin as it filed for Chapter Eleven protection on June 18. The Long island Sea coast, Calif., EV maker blamed large amounts of of market and macroeconomic headwinds for causing its financial distress that led to its economic ruin.

Related: Iconic auto parts retailer files for Chapter Eleven economic ruin

The auto parts segment has been hit pretty hard globally as 20 German EV auto parts manufacturers filed for economic ruin the total way during the primary 1/2 of 2024.

Within the U.S., nevertheless, Wheel Pros, which operates as auto parts distributor and retailer Hoonigan, filed for a prepackaged Chapter Eleven economic ruin on Sept. 9 which may get rid of $1.2 billion in debt and provide about $570 million in new capital through an exit facility.

Wheel Pros' economic ruin followed the December 2023 Chapter Eleven filing by PartsID, which operates an e-commerce auto parts retail business.

And now distressed petroleum products company Stanley Oil & Lubricants on Sept. 17 filed for Chapter Eleven protection the total way during the U.S. Financial disaster Court for the Eastern District of New York after a U.S. District Court judge granted no doubt just a couple of of the debtor's suppliers a preliminary injunction against it in a trademark and copyright infringement lawsuit, freezing certain assets and halting certain business activities.

Related: Distressed shipping company files Chapter 7 economic ruin to liquidate

The Melville, N.Y., debtor listed as much as $50,000 in assets and $1 million to $10 million in debts in its petition. It indicated that no funds may be readily readily on hand to pay unsecured creditors after any administrative expenses were paid.

Stanley Oil loses preliminary injunction decision

Stanley Oil & Lubricants filed its economic ruin petition after U.S. District Judge Nina R. Morrison on eleventh of September granted a preliminary injunction the total way during the U.S. District Court for the Eastern District of New York to Frankfurt am Main, Germany-based General Petroleum GmbH, a manufacturer of automotive, industrial, and marine lubricants.

More economic ruin stories:

• Big Tons retail chain in a position to file Chapter Eleven economic ruin
• Well known retail product maker files for Chapter Eleven economic ruin
• Mattress Firm rival files for Chapter Eleven economic ruin

The preliminary injunction enjoined Stanley Oil from manufacturing, importing, distributing, and selling any products using General Petroleum's trademarks, or any confusingly similar marks and iced up the debtor's assets related to the alleged selling of its goods with counterfeit marks or other illegal activities.

Stanley Oil in August 2019 began doing business with General Petroleum, purchasing petroleum products from the company in Sharjah, UAE, to sell the total way during the US, court papers said. The agreement led to a five-year dispute over trademarks, copyrights, and other business dealings.

General Petroleum on March 28, 2024, filed a lawsuit against Stanley the total way during the Eastern District of New York alleging trademark infringement, copyright infringement, unfair competition, deceptive trade practices, breach of contract, cybersquatting, cancellation of fraudulently obtained trademark registration, and that the defendant changed into trafficking goods bearing counterfeit marks.

The parties in consequence held productive settlement discussions for several weeks and agreed to basic terms, in step with court papers. The discussions ended around June 12 after the debtor replaced its counsel. On June 14, General Petroleum filed for a preliminary injunction.

Morrison present in favor of General Petroleum's request for a preliminary injunction on every of the flaws this is often why company demonstrated a likelihood that it'd be triumphant on the merits of its trademark infringement, unfair competition, trafficking in counterfeit goods, copyright infringement, cybersquatting, and irreparable harm claims, the judgment said.

Stanley Oil's Chapter Eleven economic ruin filing places an automatic stay on any pending litigation while its case proceeds.

The debtor's economic ruin attorney did now no longer straight away reply to a request for comment

Stanley Oil markets automobile, industrial, and marine lubricants; automotive grease; additives and chemicals; brake fluid and coolant; and base oil, lower than the Stanley, Syntrol, Prime, and Hexagen brands, in step with its web pages.

Related: Veteran fund manager sees world of pain coming for stocks