All Star Gas files for Chapter 11 bankruptcy protection

By Carlise Newman

Chicago, July 21 - All Star Gas Corp. said it has filed for Chapter 11 relief in order to restructure the debt of the company and its subsidiaries, and has reached agreement in principle with its major creditors on a post-petition financing plan that will be presented to senior noteholders.

Financing provided by the senior noteholders will be used to purchase propane during the winter season and pay operating expenses. The company intends to honor all customer deposits for the 2003-2004 winter season, and has filed a motion with the court to make an expedited approval of its plan.

As of March 19, Lebanon, Mo.-based All Star Gas had $53 million in senior secured notes due 2003 and $9.7 million 9% subordinated debentures due 2007.

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