Evergreen Oil Files for Chapter 11 Protection

Evergreen Oil Inc., along with its parent and sole shareholder Evergreen Environmental Holdings Inc., filed for Chapter 11 protection in California bankruptcy court on April 10, 2013.

As most in our industry know, Evergreen is one of several waste oil collectors and re-refiners in the US. The company operates a rerefinery in Newark, CA. This facility has the capacity to produce 0.8 TBD of Group II base oil.

Evergreen attributes the decision to file for Chapter 11 to a number of issues, including a fire that severely damaged some of its operating equipment in 2011. As a result of this, and other issues, the company’s cash flow was unable to sustain its operation.

It should be noted that Evergreen Oil had also been under a good deal of scrutiny from environmental groups over the past few years. An example of some of this pressure can be seen at Newark Patch.