A trucking company in Alberta, Canada, specializing in fluid transportation for the oil industry, is seeking credit protection since it owes more than CA$3 million ($2.3 million) to dozens of companies and the country’s tax office.
Prairie Tech Oilfield Service, situated in Elk Point, filed a notice in the Court of Queens Bench of Alberta on Feb. 22 that it is insolvent and plans to submit a proposal to its creditors in accordance with Canada’s Bankruptcy and Insolvency Act.
According to the statement, Prairie Tech owes almost CA$3.2 million to 84 unsecured creditors and an undetermined amount to 12 secured creditors.
The greatest claims include CA$1.5 million owed to two fuel wholesalers, Cornerstone Co-op and Green Leaf; CA$160,000 payable to truck repair company Overdrive Heavy Duty Services; and slightly more than CA$571,000 owed to the Canada Revenue Agency.
Prairie Tech did not explain why it sought creditor protection in its application. Such filings are usually made before a company makes a formal restructuring proposal in order to avoid bankruptcy.
Prairie Tech’s president, Dwayne Vogel, did not respond to FreightWaves’ request for comment.
It is unknown how many trucks or people the company now employs. Vogel informed the Calgary Herald in 2019 that his company has around 100 employees and contractors.
During a seven-year downturn in the energy sector, trucking companies supplying Western Canada’s oil region struggled. While the industry has been recovering from the impact of high oil prices, many enterprises are still saddled with significant debt.
When Alberta-based heavy equipment carrier ENTREC filed for creditor protection in Canada and bankruptcy in the United States in 2020, it cited the drop in oil prices. Its assets were later liquidated.
Dalmac Energy, an Alberta-based transportation company that specialized in carrying hot oiler units, closed its doors earlier this year after 55 years in business.
“This is part of a wider, sad story,” then-CEO John Babic told FreightWaves.
