Court accepts KPMG request to release all
funds of the Indigenous-owned chain of retail gas and convenience
stores.
Gen7 Fuel now able to focus on expansion
plans.
BURLINGTON, ON, May 8, 2024
/CNW/ - 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.
KPMG's request is outlined in its April
16th submission to the Ontario Superior Court of
Justice (the court). 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, "said
Mat Macleod, President, Gen7. "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, the lifeblood of the gas retailer's
operations.
"We are very grateful to our fuel suppliers who extended
additional credit during this process," said 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.
About Gen7 Fuel
Gen7 Fuel LP is Canada's first
and only chain of Indigenous-owned retail gas and convenience
stories. It develops long term viable businesses by assisting First
Nation individuals in the start-up and day-to-day operations of
retail fuel stations and variety stores. It supports 100 percent
Indigenous owned stations in Aamjiwnaang First Nation (Sarnia), Bkejwanong First Nation (Walpole Island), Nipissing First Nation
(North Bay), Batchewana First
Nation (Sault Ste Marie), and
Couchiching First Nation (Fort
Frances). The company recently announced plans for a site in
Penticton BC, scheduled to open by
the end of May. President Mat Mcleod is Gen7's majority owner
and member of Nipissing First Nation. More details are available on
the company's website www.Gen7Fuel.com.
SOURCE Gen7 Fuel