Indigenous Ont. gas bar chain claims it is being unfairly affected by former supplier's insolvency
CTV
A retail chain of Indigenous-owned retail gas stations in Ontario is claiming that KPMG has deliberately caused its banking partners to restrict access to its accounts and freeze assets under its court-supervised restructuring of the business' former fuel supplier.
A retail chain of Indigenous-owned retail gas stations and convenience stores in Ontario is claiming its finances are being impacted by the restructuring of one of the company's former fuel suppliers.
Gen7 Fuels said the court-appointed monitor in the financial restructuring of Original Traders Energy Ltd. (OTE), KPMG, has deliberately caused its banking partners to restrict access to its accounts and freeze assets.
Gen7 Fuels has six locations in Ontario – including two in northeastern Ontario, one in Nipissing First Nation and another in Batchewana First Nation -- each majority owned by First Nations community members.
“By combining their resources, they are able to purchase quality fuel at reasonable prices and compete with large oil brands,” the gas station chain said in a news release.
Gen7 was OTE's largest single customer purchasing often five million litres or more of gasoline products a week, but in the summer of 2022, OTE abruptly cancelled all contracts with Gen7 without notice, leaving the chain to find alternative fuel supply.
Since then, Gen7 Fuels has not had any business relationship with OTE.
In January 2023, OTE filed for insolvency protection for multi-million-dollar debt through the Canadian Corporate Creditors Arrangement Act (CCAA) process.
