Item 1.03 Bankruptcy Or Receivership

On July 21, 2009 (the "Petition Date"), O2Diesel Corporation (the "Company") and its wholly owned subsidiary of a subsidiary, O2Diesel Fuels, Inc. ("O2Diesel Fuels," and together with the Company, the "Debtors"), each filed a voluntary petition for reorganization under chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code") in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"). The cases are being jointly administered under the Company's case (case no. 09-12585 (KJC)). The Debtors intend to continue to manage and operate their business as debtors in possession pursuant to Bankruptcy Code sections 1107 and 1108. On the Petition Date, the Debtors filed a joint plan of reorganization that proposes to cancel all shares of the Company's stock and for the reorganized entity to issue new common stock to the plan funder, Energenics Holdings, Pte Ltd. Unsecured creditors are projected to receive a distribution of approximately 5% of their allowed claims. Information about the case is available from the Clerk of the Court, located at United States Bankruptcy Court, 824 North Market Street, 3rd Floor, Wilmington, Delaware 19801.