Pettit Oil, a fuels and lubricants distributor in Washington, liquidated its assets and discontinued operations after filing for bankruptcy late last year.
Lakewood-based Pettit reported assets of approximately $18.7 million and liabilities of around $22.5 million, according to a court document filed Nov. 25 with the Western District of Washington U.S. Bankruptcy Court. The company reported revenue of around $319 million in 2012 with the transport of more than 96 million gallons of petroleum products. In 2013, the company generated only around $172 million revenue with 50 million gallons of products as of Nov. 25.
The company said its debt was largely due to a banking error, according to court documents. Company executive Chris Slather claimed that Pettit Oil had requested overdraft protection from one of its lending banks because of the nature of the business: Pettits tank trucks load fuel and lubricants 24 hours a day, seven days a week, and suppliers withdraw from Pettits account on the 10th day after the product is loaded. The distributor claimed that the banks did not process a particular withdrawal, leading a supplier to refuse to provide products, which created a logjam in service and an accrual of debt.
Several companies such as Associated Petroleum Products Inc. in Tacoma, Wash., placed bids to purchase Pettits assets, but Pettit Oils debtors did not consent to a sale or continued lending, saying that the operation was a high cash-flow business.
The companys website and telephone lines were out of service as of Jan. 20.