January 30, 2023
Original Traders Energy Ltd. et al., a Scotland, Ontario-headquartered group of companies primarily in the business of purchasing and blending fuel products in order to supply to petroleum stations and First Nations’ communities across Ontario, obtained CCAA protection on January 30. The group's total assets are estimated to be $67.5 million, with total liabilities of $95.4 million. The group's liabilities were triggered by alleged misconduct and alleged misappropriation of funds by the group's former president, among others, which have resulted in: (i) unpaid liabilities to Canadian regulators, tax authorities, and certain trade suppliers; (ii) potentially missing assets and/or unpaid accounts receivable owing to the group; (iii) unfavourable commercial contracts and agreements entered into by the group; and (iv) litigation claims against the group. KPMG was appointed Monitor. Aird & Berlis is counsel to the companies, Bennett Jones is counsel for the Monitor and BLG is counsel to RBC.
By Dina Milivojevic