Legal claims and investor lawsuits are among the issues facing certain oil industry companies that have filed for bankruptcy protection.
Petroleum products dealer Fuel Group Trading LLC filed for Chapter 11 bankruptcy protection to reorganize its business, facing legal claims, according to its petition
All legal actions are subject to an automatic stay while the bankruptcy case proceeds. Fuel Group Trading files for bankruptcy The Round Rock, Texas-based debtor filed its Subchapter V petition in the U.S. Bankruptcy Court for the Western District of Texas in Waco on July 8, listing $751,000 in assets and $105,000 in debts.
Other estimated assets listed on the petition include possible $12 million in net operating losses, $10 million in misrepresentations made by third parties involved with certain prospective but unsuccessful oil trading transactions, and a $3.3 million claim against a shipping provider. Fuel Group Trading did not indicate a specific reason for filing for bankruptcy in its petition, and a spokesperson contacted at the phone number on a company website declined to comment. The debtor listed one unsecured creditor on its petition, McConnel Valdez LLC, a law firm representing Fuel Group and its CEO Dennis Kruse, which is owed $105,000 on an unliquidated legal claim.