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Aegean Marine Petroleum Network Inc has declared that it is likely that its shareholders "will receive nothing" in exchange for its common stock upon the company's emergence from bankruptcy.

In a document issued to the US Securities and Exchange Commission (SEC) on Tuesday, the bunker seller notes that "the common stock will have no value" and "trading in securities of the Company during the pendency of the Chapter 11 Cases will be highly speculative and will pose substantial risks".

Aegean also warns that it is possible that outstanding securities could be cancelled and extinguished upon confirmation of a restructuring plan by the bankruptcy court. If this were to happen, stockholders and other security holders would not be entitled to receive or retain any cash, securities or other property on account of their cancelled securities.

"The Company urges extreme caution with respect to existing and future investments in its securities," Aegean adds.

Default due to failure to pay

The investment risk warning comes as Aegean also reveals that, on November 1, it failed to pay $94.6m plus $2.0m in accrued interest on the maturity date of its 2018 convertible unsecured senior notes.

The non-payment constituted an event of default under the indenture governing both the company's 2018 and 2021 notes.

The company is also in default under its UAE loan facility for, among other things, failing to pay the amount payable on the due date.

Proposal to noteholders

Aegean also explains that shareholder Mercuria made a proposal to certain holders of convertible unsecured senior notes on September 25 which offered a cash recovery equal to 31 percent of the face value of the notes, subject to potential downward adjustments and administrative expenses.

Subsequently, on September 30, the noteholders came back with a counter proposal, and later delivered an out-of-court proposal on October 11.

Then, between October 23 and November 2, Aegean says it exchanged financial proposals with the noteholders in connection with a comprehensive restructuring transaction.