DISCONTINUED OPERATIONS

9 Months Ended

Apr. 30, 2012

14. DISCONTINUED OPERATIONS

On April 4, 2012, the Registrant’s wholly-owned subsidiary, e-Biofuels, LLC filed a voluntary petition for protection from creditors under Chapter 7 of Title 11 of the Bankruptcy Code with the United States Bankruptcy Court for the Southern District of Indiana under Case Number 12-03816-FJO-7A. The Court appointed Richard E. Boston, 27 North 5th St., Richmond, IN 47374 as U.S Trustee on that date. The e-Biofuels subsidiary represented approximately 99.6% of the Company’s revenues. In the filing, e-Biofuels listed total assets of $11,354,800.51 and total liabilities of $17,321,036.88. Intercompany accounts receivable due to e-Biofuels from the Company and its subsidiaries were listed as follows in the bankruptcy petition: Imperial Petroleum, Inc.: $46,542.67; Arrakis Oil Recovery, LLC: $271,311.71; and Imperial Chemical Company: $60,934.75 for a total of $378,788.93. The Company guaranteed the debt of e-Biofuels to First Merchants Bank in conjunction with the acquisition.

The table below shows the portion of the balance sheet attributable to e-Biofuels at 7-31-2011.


	e-Biofuels			Total Company
	July 31, 2011			July 31, 2011
Assets
Cash	$	626,325		$	1,307,654
Total Current Assets		6,634,718			8,162,140
Net Property, Plant and Equipment		9,246,996			14,158,113
Other Assets		950,535			2,214,468

Total Assets		16,832,249			24,534,720

Liabilities and Stockholder’s Equity
Total Current Liabilities		17,799,475			21,095,322
Long Term Liabilities		2,535,243			3,008,098
Total Stockholder’s Equity		(3,502,470	)		431,300
Total Liabilities and Stockholder’s Equity		16,832,249			24,534,720

As a result of the bankruptcy filing of e-Biofuels, the Company recorded a gain of $5,369,281 in the quarter ended April 30, 2012.

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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+ Details

IMPERIAL PETROLEUM INC 10-Q