Rhoads Energy Corp, Lancaster-based heating and cooling resource provider is presently planning to acquire four divisions of Pennsylvania’s recently declared insolvent energy company, Worley & Obetz. Diesel Direct Inc., an energy company based in Massachusetts will be snagging its remaining assets.
As per reliable sources, the deal, being approved by the United States Bankruptcy Court, will let Rhoads buy four of Worley’s previously owned assets including a propane business, an HVAC installation and maintenance business, Worley’s Amerigreen residential and commercial natural-gas business, and the Amerigreen wholesale propane business.
According to Michael DeBerdine, Chief Executive Officer of Rhoads Energy, the company will operate the newly owned services from its Lancaster-based headquarters. In line with the firm’s previously made plans to honor the remaining terms of Worley & Obetz’s propane and HVAC service, prior customers of Worley & Obetz will be able to renew their accounts with Rhoads Energy, DeBerdine said.
Sources on the matter claim that Diesel Direct has successfully won most of Worley’s assets in a recent auction held to pay off some of the troubled firm’s total $90.1 million in debt, which includes Worley divisions in fleet of fueling, heating oil and commercial storage-tank service.
According to court orders, Diesel Direct has agreed to pay $10.7 million for Worley’s additional assets, which reportedly is about one-third of firm’s $30.1 million valuation determined by the company itself.
William McNamara, CEO of Diesel Direct, said in a statement that their team is thrilled to expand its existing footprint in the Pennsylvania area with the recent acquisition and are looking forward to growing Diesel Direct’s presence in the regional market.
For the record, on June 6, 2018 the non-operational energy company was filed with chapter 7 bankruptcy, two days after Worley and its subsidiaries shut down amidst news of an investigation into suspected fraud. Eventually later in August, Worley’s former controller, Karen Connelly and former CEO, Jeffrey B. Lyons, were charged with fraud by the Northern Lancaster County Regional Police and since then are under investigation.