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Gas City Files For Chapter 11 Bankruptcy

The gas station chain started in 1966 and famous for its red, yellow and black signage seeks bankruptcy protection.

 

Frankfort-based Gas City Ltd., which operates convenience stores, car washes and restaurants in dozens of gas stations across the Southland, filed for Chapter 11 bankruptcy protection late Tuesday in U.S. Bankruptcy Court in Chicago.

Owner William McEnery, of Homer Glen, listed assets of between $50 million and $100 million and debts of between $100 million and $500 million in the filing.

McEnery, whose holdings also include Green Garden Country Club in Frankfort, a chain of Creamery ice cream and fast-food restaurants, a trucking company and two casinos in Louisiana, has been hit with at least four foreclosure lawsuits by banks since June. The banks, including PrivateBank, Northern, MB Financial and First Community Bank of Homer Glen, filed suit seeking millions in unpaid loans that were made with Gas City stations as collateral.

Also listed as a creditor is the State of Illinois, which is owed $1.6 million in unpaid fuel taxes.

Stations were open for business as usual last night.

Calls to the corporate office in Frankfort last night went unanswered.

Gas City was founded by McEnery in 1966 in Chicago and has stations in Illinois, Indiana, Florida and Arizona.

Chapter 11 bankruptcy allows companies to remain open and reorganize while working out payment arrangements with creditors.

Johnny Stoll

10:28 am on Wednesday, October 27, 2010

Guess their already high prices are headed even higher.

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