East Kingston - General:

AG wants to appoint receiver for Flynn's Oil

AG wants to appoint receiver for Flynn's Oil

By Jennifer Feals
jfeals@seacoastonline.com
February 02, 2010 10:02 AM

EXETER — The state Attorney General’s office is asking a judge to appoint a receiver for Flynn’s Oil, who will evaluate the company’s assets and liquidate them if necessary.

Senior Assistant Attorney General James Boffetti issued a letter Monday, Feb. 1, to the approximately 350 consumers who have filed complaints against the company, updating them on the intended action.

“Since they have been unable to deliver the oil or to repay their customers for pre-bought oil, we are seeking the appointment of a receiver,” Boffetti said. “That person would basically take control of the business and figure out what the company's assets are. They would have the ability to sell the business or liquidate assets in a timely basis for distribution to those holding claims against Flynn’s Oil.”

A receiver could also file bankruptcy on behalf of the company.

It is too early to know if there will be any distribution available, Boffetti said.

This is the second court action the Attorney General’s office has taken against Flynn’s since seeking a potential $2 million attachment against its assets in late December, when the company stopped delivering oil to customers who had already paid for the purchase. A court date has not yet been set on the matter.

There are no guarantees that customers will get their money back, but this is a step to that hopeful end, Boffetti said.

While Flynn’s Oil has indicated its intention to pay back customers, Boffetti said it has not done that or shown the state how it intends to do so.

“They are still in business, at least in terms of the car wash being open, but there is no indication they are going to give us anything at this point that is going to satisfy us,” he said.

“Our concern is to get customers repaid or to get them the oil that (Flynn’s) promised them. They haven’t been able to give us a plan that does that.”

Boffetti said the appointment of a receiver would be authorized or denied by the court in the near future, but the work that person would do will take time.

Flynn’s lawyer, Larry Forsley, has asked the court to allow the company until March to file a response. A hearing will be held after the company does so, Boffetti said.

“We’re talking a few months away before we see something happen,” he said. “But if the receiver is appointed they can move forward right away and get a sense of assets and liabilities. That’s why we are asking (the court) to approve this.”

In his letter to customers, Boffetti advised them to seek alternative sources of heating oil. He also suggested those who prepaid for their heating oil by credit card to contact the credit card company, state that they did not receive the product they paid for, and request a chargeback.

Customers who are facing financial difficulties in purchasing heating oil should contact Rockingham Community Action or their local welfare department, Boffetti advised. A database for services in New Hampshire is available at www.211NH.org or by dialing 211.

The Attorney General’s office will update consumers on its Web site. Click on the link “Flynn’s Oil Co. updates” to find the most recent information. http://www.doj.nh.gov/consumer/