Both Personal & Corporate Bankruptcies Engulf Bulk Petroleum
Bulk Petroleum, a petroleum distributor based out of Bequon Wisconsin is being cornered by their creditors, forcing them to try to cut corners to stay above water. Bulk Petroleum has tried to get their bankruptcy approved for quite some time—though they remained profitable for the majority of 2008, gas prices collapsed and sent gas companies behind on their finances.
That was just the tip of Bulk Petroleum’s iceberg of financial woes. Owner Darshan Dhaliwal was sued for damages of $17 million for selling unbranded, generic gas under the British Petroleum (B.P.) brand name at over 120 nationwide gas stations. The situation was even further enveloped in controversy, as Dhaliwal had a close personal relationship with the former Governor of Wisconsin Tommy Thompson, who incidentally also owned a large chunk of Bulk Petroleum. Presumably, this suit by British Petroleum prompted Bulk Petroleum to file for Chapter 11 bankruptcy in February of 2009, which nearly a dozen creditors contested.
A Chapter 11 bankruptcy plan would be in the best interest of many of Bulk Petroleum’s creditors, allowing them to keep around 200 fueling stations open and generate new revenue with which to repay their debts. Under a Chapter 11 reorganization, the company will attempt to sell over 100 fuel stations, which will rake in unknown funds given the unsteady real estate market. Bulk Petroleum would stand to keep just under 200 fuel stations, and its owner Darshan Dhaliwal would be demoted to company president instead of full owner.
If Bulk Petroleum were redirected to a Chapter 7 liquidation by a bankruptcy judge, their payback to secured lenders can be decreased by $2 million, with greater losses for unsecured lenders.
If you are a small business owner, you may worry that a company bankruptcy might prompt creditors to file an involuntary personal bankruptcy against you. Rest assured, this crossfire of personal and business bankruptcies are the exception and not the norm. Let a bankruptcy lawyer guide you through the steps of a successful bankruptcy—that will keep the creditors from hounding you once and for all. Call us for a free bankruptcy consultation at 1-800-260-1402.
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