In Alabama Dunhill Terminals and three associated firms have filed for bankruptcy.
Business has been hit by poor market conditions leaving the company unable to pay $60 million (44.7 million) in construction loans.
Arc Terminals is trying to buy Mobile-based Dunhill through an auction in bankruptcy court. Dunhill proposed in court papers that its assets be auctioned on 12 May.
Arc Terminals is a subsidiary of New York-based private equity firm Lightfoot Capital Partners.
We hope that it is going to proceed very quickly and that it will result in a sale of all of the assets, Larry Voit, Dunhill's Mobile lawyer, comments.
Arc has bought ownership of Dunhill's $57.5 million in loans from Regions Bank. Buying loans of a company that's in financial distress is one way to acquire control. Arc has offered to pay $40.5 million for Dunhill. Of that, $40 million would be forgiven debt and $500,000 would be cash.
Arc and Dunhill operate tank farms they hire out to other companies that need to store and distribute chemicals including petrol, aviation fuel, biodiesel and ethanol. Dunhill was also building a biodiesel refinery in Chickasaw.
Dunhill has storage capacity of 650,000 barrels in Chickasaw, and could eventually have 850,000 barrels on Blakeley Island. That would be a major boost to Arc's storage capacity of 2.1 million barrels.