Getty Petroleum Marketing Inc. announced Nov. 16 the restructuring of its business as part of ongoing efforts to rationalize assets, eliminate parent-guaranteed debt and reduce operating costs.

Under the restructuring plan, Getty has sold all assets unrelated to the 890 properties leased from Getty Realty Corp., the company said in a news release.

The East Meadow, N.Y.-based firm, which markets ethanol and petroleum products in the Northeast region, also announced additional steps to manage costs including closing two marketing regions, eliminating 194 jobs and exiting the direct-supplied retail gasoline business.

In September, Getty sold assets and inventory related to its blending and supply to LUKOIL Pan Americas L.L.C. for $25.4 million. Divesting this capital-intensive unit, which blended and traded physical product, relieves Getty of significant parent guaranteed short-term debt obligations.

LUKOIL Pan Americas L.L.C. trading operations are unrelated to Getty.

On Nov. 16, Getty completed the sale of 164 branded service station properties, contracts to supply approximately 339 other stations and other assets, including its home heating oil and propane gas company, to LUKOIL North America LLC (LNA), for $195.5 million.

The assets sold are unrelated to the properties leased from Getty Realty Corp. Getty is using the sale proceeds to pay off parent guaranteed long-term borrowings.

Vadim Gluzman, chief executive of LKUOIL North America, said, "LNA is expected to be the vehicle through which Lukoil will concentrate its future growth in the United States.”