Despite denials, KPMG continues to tell bankers to freeze Gen7 Fuel accounts

Oil and Gas 22batch dusanpetkovic 1 Despite denials, KPMG continues to tell bankers to freeze Gen7 Fuel accounts

Accounting firm’s lawyers, Bennett Jones LLP, issues letter to BMO’s North Bay branch, placing over 100 indigenous jobs at risk.

TORONTO, March 22, 2024 /CNW/ – The Gen7 Fuel bank account at BMO’s North Bay branch has been frozen after KMPG’s lawyers at Bennett Jones LLP presented a letter demanding the action. The letter was issued to the bank as part of KMPG’s court-appointed monitoring of the debt restructuring process for Ontario Energy Traders Inc. (OTE), a company and a legal proceeding that KPMG has acknowledged has no relationship to Gen7 and OTE’s Canadian Creditor’s Arrangement Act (CCAA) filing. On March 13, in response to Gen7’s earlier allegations of KPMG’s unwarranted actions, KPMG issued the following statement to CTV News, “KPMG is the court-appointed monitor of the OTE Group’s application under the Companies’ Creditors Arrangement Act. Gen7 Fuel is not part of these CCAA proceedings and we have not had the alleged discussions with Gen7’s banking partners.” The CCAA filing identifies Bennett Jones LLP as KPMG’s legal counsel. On March 18, Bennett Jones delivered a letter to the BMO branch freezing Gen7 Fuels account.

Gen7 Fuel received a letter today from BMO Financial Group stating that the reason for the account freeze, “Pursuant to the Mareva Order of J. Kimmel dated January 16, 2024 (the “Mareva”) we cannot deal with any assets of Glenn Page including real property, bank accounts, insurance policies, annuities and other assets held by them or by any other person or entity on their behalf. This applies to all of Mr. Page’s assets whether or not they are in the possession of Mr. Page and whether they are solely or jointly owned by any other party.”

A numbered company owned by Glenn Page is part owner of Gen7 Fuel (owning less than twenty percent of the company and having no controlling interest).

“This is an abuse of KPMG’s court-appointed role in the OTE proceeding,” said Mat Mcleod, President, Gen7 Fuels. “Bennett Jones is taking an overly broad and aggressive interpretation of the CCAA’s Mavera injunction against Mr. Page, a minor shareholder in our company who has no control over banking our operations.”

Gen7 relies on the bank account to pay for the fuel it provides to its stations. If these funds are not released within 48 hours, their pumps will run dry.

Mcleod said, “Our understanding of Mavera injunctions is that they are not intended to unduly hamper a defendant’s legitimate business operations, and in this case, KMPG’s and its lawyers are doing just that – and not to Mr. Page but a highly-regarded majority owned Indigenous business and its over 100 employees. We are taking immediate legal action to get before Judge Kimmell and press our case. KPMG has already publicly acknowledged we have no involvement in the OTE proceedings, yet they continue to allow their law firm to place our company in jeopardy.”

Gen7 has six locations in Ontario, each majority owned by First Nations community members. By combining their resources, they are able to purchase quality fuel at reasonable prices and compete with large oil brands.

About Gen7 Fuels

Gen7 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) Curve Lake First Nations (Kawarthas), Nipissing First Nation (North Bay), Batchewana First Nation (Sault Ste Marie), and Couchiching First Nation (Fort Frances). President Mat Mcleod is the majority owner and member of Nipissing First Nation

SOURCE Gen7 Fuel

rt Despite denials, KPMG continues to tell bankers to freeze Gen7 Fuel accounts

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