Heating Oil Partners Income Fund

Heating Oil Partners Income Fund

September 27, 2005 15:59 ET

Heating Oil Partners Income Fund Provides Update on Chapter 11 Filing By Operating Subsidiary and TSX Listing

TORONTO, ONTARIO--(CCNMatthews - Sept. 27, 2005) - Heating Oil Partners Income Fund (the "Fund") (TSX:HIF.UN) announced that the Fund's operating subsidiary, Heating Oil Partners, L.P. ("HOP" or the "Company") received yesterday a series of court orders in connection with the filing of its voluntary petition for reorganization under Chapter 11 of the United States Bankruptcy Code. The Company also obtained an order under the Companies' Creditors Arrangement Act (Canada) (the "CCAA") recognizing the Chapter 11 proceedings. Both the U.S. and Canadian filings include Heating Oil Partners, G.P. Inc., the Company's general partner, and HOP Holdings, Inc., a 100% subsidiary of the Fund and an 88.1% owner of the Company. The Fund is not directly a party to any of these filings.

The Fund also announced that it has been notified of an expedited review by the Toronto Stock Exchange (the "TSX") of the listing of the Fund's units on the TSX, relating to the Fund's satisfaction of applicable listing requirements. A hearing to consider the suspension of the listing will be held on October 4, 2005, and the Fund has been advised by the TSX that the units may be suspended from trading immediately following completion of the hearing. While a determination has not yet been made, if the TSX determines to suspend the listing, it is unlikely that an alternative listing for the units will be obtained on another public market. Unitholders will be kept apprised of the status of the TSX listing, and other developments affecting the Fund and the Company, as this process advances.

The Fund indirectly owns approximately 88.1% of HOP, one of the largest residential heating oil distributors in the United States. HOP delivered over 236 million gallons of heating oil and other refined liquid petroleum products for the twelve months ended June 30, 2005 to approximately 137,000 residential, fleet and commercial customers, primarily in Connecticut, Delaware, Maryland, Massachusetts, New Jersey, New Hampshire, New York, Pennsylvania, Rhode Island, Virginia and the District of Columbia. HOP's operations are conducted through 16 regional distribution and service centres. From these centres, HOP provides its customers with a full range of value-added services, including the delivery of heating oil and the installation, maintenance and service of furnaces, boilers, heating equipment and air conditioners on a 24 hours-a-day, 365 days-a-year basis.

This news release contains forward-looking statements. Such statements involve known and unknown risks, uncertainties and other factors outside of Management's control that could cause actual results to differ materially from those described in the forward-looking statements. The Fund does not assume responsibility for the accuracy and completeness of these forward-looking statements and does not undertake the obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Additional information, including the Fund's complete financial statements for the fiscal year ended September 30, 2004 and the quarter ended June 30, 2005, can be found at www.sedar.com or on the Fund's website at www.hif-un.com.

Contact Information

  • Heating Oil Partners, L.P.
    Carlos Rojas
    Chief Financial Officer
    (203) 655-8290