On May 8, the Westlock Shell on 100 Street has officially closed down due to receivership.
A sign displayed on the now locked door says that the building is now in the hands of Ernst & Young Inc. due to a receivership agreement where a licensed trustee has control over the businesses' assets. This is a joint lawsuit in connection with another Shell location in Smithers, B.C.
Court documents filed by Ernst & Young revealed that the owners owed just over $3.9 million to the National Bank of Canada, including over $1.7 million for the Westlock branch. The brief revealed on May 2 also indicates that to the knowledge of the National Bank of Canada, "... the Westlock Bank Account is not being used as an operating account for the Westlock Gas Station... The Lender is unaware of what financial institution the Borrowers use for their day to day operational expenses."
Both stations are owned by Sweetpal Chauhan of Sherwood Park through his broader group of companies the Hemkund Group, which has multiple claims against them for failure to repay loans, according to court documents.
