Landsea Oil Co. Files Under Chapter 11 : ORANGE : COUNTY

After failing to negotiate a compromise with its bankers over a $67-million note, Landsea Oil Co., an Irvine petroleum importing and marketing company, recently filed for protection from creditors under Chapter 11 of the federal bankruptcy code.

Landsea Oil Co. and its subsidiaries import, blend and trade petroleum products. The company, which operates an oil terminal in Martinez, Calif., reported about $221 million in gross operating revenues for the year ended March 31, 1985. The privately held company does not release earnings.

According to documents filed Tuesday with the federal bankruptcy court, Landsea Oil Co. and its four subsidiaries have about $80 million in assets and $74 million in liabilities. Paris-based Banque Paribas claims the company owes it $67 million, which is partially secured by property owned by Landsea Terminals Inc. Other creditors, including Pacific Gas & Electric Co. and the California state controller, are seeking about $7 million.

“Our action was precipitated by the action of one bank,” said Harold Dietler, corporate secretary and treasurer. Dietler said Landsea tried to re-negotiate the terms of its loan from Banque Paribas but was not successful. “We intend to continue operating the company,” Dietler said.

He said the company’s terminal, with a 2.7-million-barrel capacity, was handling about 850,000 barrels of oil a month. The company imports oil from all over the Pacific Basin and sells it to major oil companies.

According to court documents, Landsea owes Pacific Gas & Electric Co. of San Francisco $3.1 million. The company also owes the California state controller $478,223 in back excise taxes and owes Ethyl Corp. of Richmond, Va., $403,797 for lead-additive purchases.

Landsea employs about 37 people in Martinez and Irvine.

Dietler said the company plans to contest the bank’s claims at a bankruptcy hearing scheduled for 10:30 a.m. today in federal court in Santa Ana.