Huntway Partners Out From Under Chapter 11

Newhall-based Huntway Partners, which owns two oil refineries in California, said Thursday that it has emerged from Chapter 11 bankruptcy protection under a prepackaged plan that turns over a major stake in the company to its lenders in exchange for wiping $71 million in debt from its books.

The company has struggled in recent years as demand for its asphalt slowed, in part because of a series of heavy rains and earthquakes. As sales slowed, the company lost money from 1992 to 1995.

At $96 million, Huntway’s debt load had become “way too much for our capital structure,” said Warren Nelson, executive vice president and chief financial officer. The company filed for bankruptcy protection in November.

“Our operating outlook will improve as the California economy improves with more road and private construction,” he said, citing Huntway’s involvement in the construction of Orange County’s toll roads.

The company also hopes demand will increase for its modified asphalt, which is rubberized and lasts longer, he said.

Huntway, which operates refineries in Wilmington and Benicia, said the reorganization plan was approved in November by the company’s unit holders and confirmed by the U.S. Bankruptcy Court on Dec. 12.

The firm’s units were initially offered for sale to the public in November 1988 for $11.50 each. The price of the units closed unchanged at 81 cents on Thursday on the New York Stock Exchange.