August 3, 2021
Stratford Petroleum Inc., a Stratford, Ontario-based company that owns and operates an Ultramar gas station and related convenience store in Stratford, was placed in receivership on July 9 on application by BMO, owed over $2.5 million. BMO, which provided a real estate financing loan to the company, began to have concerns in January 2021 when the company missed a payment. The company's financial results were also a concern with gas volumes down 60% from projections and convenience store sales down 70%. After BMO learned that the gas station was under a conditional agreement of purchase and sale ("SPA"), BMO demanded repayment for all amounts outstanding from the company. However, the SPA did not close on the expected date and the company's principals advised BMO that the sale process was "stuck" because the company's gas supplier refused to waive a right of first refusal in connection with the business. At present, there is no closing date and the loan has been in default for six months. Rosen Goldberg was appointed receiver. Chaitons is counsel to BMO.