CONCORD, N.H. (AP) – Court records say a New England-wide plumbing and heating supply company with offices in Concord is owed the most money so far by an oil company that suddenly closed its doors in April, leaving customers in the cold.
Granite Group Wholesalers claims that Rumford Energy owes them $197,426 for HVAC supplies and an overdue loan it co-signed for Rumford.
The Granite Group’s claim is one of 248 filed so far in the Rumford Energy bankruptcy for a total of $608,872. The claims offer a first glimpse into Rumford Energy’s debts, as lawyers working on the bankruptcy case wait for a clearer picture of the company’s finances to emerge. The Granite Group also has filed a lawsuit against Rumford, which has been put on hold.
Rumford Energy sold oil and heating and cooling systems in Concord for six years before it closed without notice, leaving hundreds of customers with empty oil tanks and broken contracts. The company filed for bankruptcy a little more than a month later, indicating it owes at least $1 million to more than a thousand creditors.
The next biggest debt is the state, for unpaid business taxes totaling $75,000. The majority of the remaining claims are filed by customers owed between a few hundred and few thousand dollars for prepaid, undelivered oil. Some businesses also have filed claims for unpaid services.
The largest claims would not have a higher priority than the claims of customers owed money by Rumford Energy, said Assistant Attorney General Peter Roth. But many of the company’s secured creditors, who would get paid first if there are any leftover assets to go around, have not filed claims yet, Roth said.
Secured creditors will likely include Rumford Energy’s bank, Ocean National, as well as any other companies that hold outstanding loans with some kind collateral, such as a home or vehicle.
Rumford Energy owner Tim Ferns said during a bankruptcy hearing Friday that he had a seven-year loan from Ocean National for $170,000 that he still owes $80,000 on. He said he also took out a second $50,000 loan from Ocean National two years ago, but it has already been paid back. Ferns told the court that those loans were secured with his personal guarantee and a lien on his home.
Ferns also said he had also borrowed more than $100,000 from his parents over the past five years, and his parents held security in all Rumford Energy assets as well as his home and his life insurance policy.
Creditors have until September to file claims against the company.
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