Suppliers Allege Retailer Owes Millions After Defaulting On Oil Futures Contracts

摘要

Two of the largest suppliers in the Northeast are suing a Connecticut energy firm, alleging that it has defaulted on millions of dollars worth of futures contracts. Global Companies and Sprague Energy also are seeking court permission to seize the home of one of the directors of Levco Tech Inc., saying he tried to shield his assets from them by transferring title to the property to his wife. Levco, in turn, is suing Sprague. It says Sprague failed to disclose the risks involved in futures trading, misrepresented the situation, and did not liquidate the contracts when Levco asked it to do so in the face of plunging oil prices. It is seeking damages and a court ruling that the contracts are void and can be rescinded.