Bankruptcy Judge OKs Second Extension for PCF Saleco
Published in CSP Daily News
Retailer/marketer continues to hammer out issues with Phillips 66
LONE TREE, Colo. -- Convenience store retailer PCF Saleco LLC has received a second extension to an involuntary bankruptcy petition filed by three industry suppliers. A U.S. Bankruptcy Court judge approved the unopposed extension request to Wednesday, October 31, earlier this week, according to court documents obtained by CSP Daily News.
In late September, PCF Saleco, a Lone Tree, Colo.-based owner and operator of 78 c-stores and gas stations, received a two-week extension from the original response date of September 27, citing a pending plan to reach a "successful conclusion" to negotiations with its gasoline supplier--Phillips 66--that would allow the company "to stabilize and focus upon its business operations."
Apparently still at an impasse, PCF requested a second extension on October 12, specifically noting an extended contract negotiation with ConocoPhillips/Phillips 66.
"For the past several months, [PCF Saleco has] been in extensive negotiations with representatives of Phillips 66 in an effort to resolve numerous disputes and issues between and among the parties," the October 12 request repeated from the first extension bid.
The second request came after PCF handed operations of its stores in the Kansas City market over to GasMart USA, allowing the pumps and related c-stores to begin operating again.
Financial problems at PCF Saleco had led to the temporary shutdown of the sites, which motivated the involuntary bankruptcy filing.
PCF Saleco, which purchased its 78 stores from ConocoPhillips on Jan. 30, 2009, allegedly owes the three suppliers involved in the involuntary petition more than $1.65 million, according to the Chapter 11 documents filed with the District of Colorado Bankruptcy Court on August 31.
Distributor Core-Mark International Inc., South San Francisco, Calif., claims PCF Saleco owes it more than $1.64 million. D&H Pump Service Inc., a supplier of commercial fuel systems based in Albuquerque, N.M., said PCF Saleco owes it $10,778 and ACM Industries Inc., a restaurant-supply company, also of Albuquerque, claims PCF Saleco owes it nearly $3,000.
Earlier this month, Phillips 66 spokesperson Alissa Hicks told The Kansas City Star that the fuel company was "working with the marketer and the owner to resolve the issue as quickly as possible."
(See Related Content below for previous CSP Daily News coverage.)