Court determines Gen7 Fuel bank accounts not part of OTE's insolvency process
The bank accounts of Gen7 Fuel LP (Gen7) and its network of wholly owned Indigenous retail gas and convenience stores have now been officially unfrozen.
The action comes after KPMG, the court-appointed monitor in the Original Traders Energy Ltd's (OTE) process Companies' Creditors Arrangement Act (CCAA), requested that court specifically remove Gen7and its associated stations from the legal procedure that empowered the court to seize assets it deemed associated with OTE's insolvency. As court-appointed Monitor, KMPG is authorized to search for and act upon these seizures.
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KPMG's request is outlined in its April 16th submission to the Ontario Superior Court of Justice. The request states, "For greater clarity, the Mareva Order dated January 16, 2024, does not apply to the assets and bank and other accounts of the following entities and that no financial institution or other person shall freeze or enjoin the use of the accounts of the following entities based solely upon the Mareva Order dated January 16, 2024". Following this statement, KPMG lists Gen7 Fuel LP and all its retail operations.
According to KPMG's submission, BMO had refused to release the funds from Gen7's bank accounts until it received specific direction from the court.
"OTE and KPMG have sought to bring our company into OTE's insolvency process since KPMG's first filings to the court," says Mat Macleod, president, Gen7 in a statement upon the decision. "While KPMG's request of the court now finally puts a stop to these false accusations, for more than a year now, the damage to our reputation and ability to operate has been a significant burden on our company, our retail partners, and employees."
The bank account freezes resulted in Gen7 being unable to pay for fuel deliveries.
"We are very grateful to our fuel suppliers who extended additional credit during this process," adds Macleod. "Without their support, we would have had to temporarily cease operations."
With the false association with OTE's insolvency process resolved, Gen7 is now focused on expanding its operations to Western Canada and other First Nations sites in Ontario.
