Oil Firm Owner Files For Bankruptcy Protection
The owner of an oil company that the state claims continually failed to deliver home heating oil as promised has filed for bankruptcy protection.
George E. Papageorge, owner of Kalami Fuels Inc., filed the petition under Chapter 13 of federal bankruptcy laws March 12 at U.S. Bankruptcy Court in Hartford, Conn. Earlier this month, Attorney General Martha Coakley's office froze the assets of his company, which does business as Action Oil & Septic, based in Oxford. The petition indicates Papageorge is a resident of Thompson, Conn.
The filing lists more than 60 creditors to whom Papageorge owes money, with estimated liabilities of up to $1 million. The creditors include Vincent Oil of Southbridge, with a claim of $700,000, and Arcudi Oil Corp. of Milford, with $96,000. Coakley's office is also listed as being owed $112,000. When her office froze Kalami Fuels' assets, it said it was seeking $112,000 from the company: $75,000 in civil penalties and $37,000 in restitution to victims.
A phone message at the company's office in Oxford said the company has "no banking ability to purchase oil" and is closed. It apologized to customers and directed callers to call the attorney general's office with any questions they might have. It also instructed callers to not leave messages.
Last week, a Worcester Superior Court judge ordered the company to issue refunds to prepaid customers for any oil they didn't receive, according to Coakley's office.
According to the website Lawyers.com, Chapter 13 bankruptcy allows individuals or sole proprietors who have an income to repay some level of debt over three to five years. Like Chapter 11, the filer will go through a "means test" to determine the amount of debt he or she has to pay back and for how long.
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