Bulk Petroleum Corp. President Darshan Singh Dhaliwal said his company, which filed for Chapter 11 bankruptcy protection on Feb. 18, will survive this setback and will reemerge in the next few months, according to an interview with the Sikh News Network. The filing was attributed to the spike in oil prices last year.
“We’ll still be there,” he said. “We will come out of it within 60 to 90 days.” Dealers are expected to settle their debts at that time.
The Mequon, Wis.-based company was selling gas to about 400 dealers across the Midwest when the record-setting spike in oil prices made it more expensive for the company to buy gasoline and made it difficult for operators to pay for the fuel they bought Bulk Petroleum.
“The choice was to make (each of) the 400 dealers file for bankruptcy or have Bulk Petroleum file for bankruptcy,” he said. The first option would have affected between 400 and 500 families that own the gas stations he said, adding it was better for Bulk Petroleum to take the hit.
Bulk Petroleum filed for protection at the U.S. Bankruptcy Court for the Eastern District of Wisconsin. It is part of the conglomerate, Dhaliwal Enterprises, Inc., and listed between $50 and $100 million in assets and liabilities.