PCF Saleco Aims to Resolve Financial Issues Without Bankruptcy
Cites gasoline supply contract issues; receives extension from court
Published in CSP Daily News
LONE TREE, Colo. -- A bankruptcy judge in Colorado has granted a 14-day extension to convenience store retailer PCF Saleco LLC to respond to an involuntary bankruptcy petition filed by three industry suppliers. In court documents obtained by CSP Daily News, PCF Saleco stated that it is hopeful the two-week extension will be enough time for the company to resolve its financial problems, specifically noting an extended contract negotiation with ConocoPhillips/Phillips 66.
"For the past several months, [PCF Saleco] have been in extensive negotiations with representatives of Phillips 66 in an effort to resolve numerous disputes and issues between and among the parties," a documents stated. "A successful conclusion to these negotiations will allow [PCF Saleco] to stabilize and focus upon its business operations."
PCF Saleco, a retail chain spun off of K&G Petroleum sometime after 2008, 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 it is owed more than $1.64 million. D&H Pump Service Inc., a supplier of commercial fuel systems based in Albuquerque, N.M., said it is owed $10,778 and ACM Industries Inc., a restaurant-supply company, also of Albuquerque, claims it is owed nearly $3,000.
PCF Saleco initially had until September 27 to respond to the involuntary petition.
CSP Daily News previously reported that a couple dozen ConocoPhillips/Circle K-branded stores around Albuquerque had posted "cash-only" signs on their gasoline dispensers and store windows and pumps at several stores had run out of gasoline, citing employees and customers interviewed by The Albuquerque Journal. Also, several Phillips 66-branded stations in Kansas City owned by PCF Saleco, according to reports, temporarily shut down due to "financial difficulties." Similar reports emerged out of Salt Lake City, Utah.
(See Related Content below for previous CSP Daily News coverage of PCF Saleco.)
PCF Saleco, however, "believes that if a favorable agreement with Phillips 66 can soon be reached, this will allow the [retailer] to resolve the debt claims being asserted by the petitioning creditors and other trade creditors such that an involuntary bankruptcy proceeding would be unnecessary," stated a court document.
Lone Tree, Colo.-based PCF Saleco is the owner and operator of 78 convenience stores or gasoline stations.