M&F LeBlanc Oil: a $13.5 million receivables list, the receiver's $2.5 million

On April 1, 2026, the president and sole shareholder of M&F LeBlanc Oil Ltd., a fuel distributor in Richibucto, N.B., swore that the company had "current Accounts Receivable for customer deliveries in the amount of $13,508,581.96" and that it was "NOT in arrears of any payments" to the Toronto-Dominion Bank, which had already appointed Deloitte Restructuring Inc. as its private receiver and manager, per the president's affidavit, Apr. 1, 2026, paras. 11, 13, 16. The company asked the Court of King's Bench of New Brunswick to stop the bank and Deloitte from interrupting its deliveries or, in the alternative, to confine any court-appointed receiver for 60 days to monitoring the business and collecting those receivables, which its brief put "in excess of $13 Million" against a bank "owed only $8 Million," per the company's pre-hearing brief, Apr. 14, 2026, paras. 48–50.

On May 22, Deloitte, by then the court-appointed receiver and manager, reported on the receivables. Its Second Report says the sole shareholder gave TD a listing dated February 28 showing $13,508,582, and that the receiver, recreating that listing from source documents in the company's PetroPlus accounting system, arrived at $2,546,044, "representing an unfavorable variance of $10,962,538." The same report says the fiscal 2025 statements the bank received showed sales and purchases each $12,000,000 higher than the external accountant's version, and that more than 7,000 items were deleted from the company's laptop two days before the receivership application, per the Second Report of the Receiver, May 22, 2026, paras. 13, 18, 20, 25–27. The receiver called these its "preliminary findings" (id., para. 5(ii)). In September, by then also the company's trustee in bankruptcy, it said the review was continuing (Third Report of the Receiver, Sept. 18, 2026, para. 45).

The bank's case, and the company's

M&F was incorporated in New Brunswick in 2000 and was a fuel distributor headquartered in Richibucto, with a second location in Miramichi (Second Report, para. 2). Its president's affidavit lists among its customers a nursing home, retail gas stations, the local fishing industry and residential customers, says many customers were on "auto-fill" programs, and puts the staff at 10, four of them delivery truck drivers (president's affidavit, paras. 6–7, 9).

TD's affidavit of April 10 describes an operating loan first limited to $5,250,000 and later raised to $7,500,000, a $510,000 term loan and two equipment loans, secured by a general security agreement, a mortgage on the company's Richibucto real property and an assignment of rents, with the sole shareholder's unlimited personal guarantee behind it. It puts the debt on April 6 at $8,134,781.46. The accounts moved to the bank's Financial Restructuring Group on or about January 8, 2026; the affidavit says the move reflected concerns about the company's liquidity, evidenced by repeated excesses over the $7,500,000 limit, a timing gap between payables and receivables, and the unauthorized accumulation of statutory payables. The company had to pay its fuel suppliers within approximately 10 to 20 days, it says, while its average collection terms exceeded 90 days, and the arrears included $277,390.68 of outstanding HST remittances as of March 29 and $368,828.30 of unremitted provincial fuel tax as of February 28. The bank demanded payment on January 28, per the TD affidavit, Apr. 10, 2026, paras. 9–14, 22, 30(i), (vi)–(vii), 35.

Deloitte, which TD retained as its financial adviser on February 19, records in its First Report what it learned at a meeting with the sole shareholder in Moncton in February: about two years earlier a competitor from which M&F had bought fuel entered its market, cut M&F's payment terms from 45 days to 7, "significantly reduced M&F's purchase discount," and offered M&F's customers extended terms. The company also said it had secured an $8,500,000 term sheet that "required no further due diligence and contained no conditions precedent whatsoever." Deloitte says the document contained language calling its provisions "indicative and non-binding" and had not been executed by the counterparty, and that Deloitte was later told the deal would not proceed "due to concerns regarding the credit quality of M&F's accounts receivable," per the First Report of the Proposed Receiver, Apr. 14, 2026, paras. 3, 18–20.

Deloitte asked on February 23 for documents supporting 23 customer accounts totalling "just in excess of $10,000,000," and by April 14 had received none of them. In calls to commercial customers after its private appointment, four customers whose accounts collectively showed more than $825,000 outstanding told it they had paid in full, two adding that they had not bought fuel from M&F since 2021 or 2022; Deloitte called that information "preliminary in nature" (First Report, paras. 22, 25, 35(iii)). The company's position was that it was working with several brokers and lenders on a refinancing it expected to take 60 days (president's affidavit, para. 23). TD's affidavit says no refinancing had come to fruition (TD affidavit, para. 30(xi)).

Justice Darrell J. Stephenson heard the bank's application in Saint John on April 17 (Court File No. SJM 72-2026), with submissions from counsel for both sides, and appointed Deloitte receiver and manager under s. 243(1) of the Bankruptcy and Insolvency Act, s. 33 of the Judicature Act and Rule 41 of the Rules of Court. The order gave Deloitte and its counsel an Administrative Charge of up to $200,000 as a first charge, subject to ss. 14.06(7), 81.4(4) and 81.6(2) of the BIA, a Receiver's Indemnity Charge ranking second, and authority to borrow up to $350,000, per the Receivership Order, Apr. 17, 2026, preamble and paras. 2, 20, 23–24, 26. The receiver terminated all of the company's employees effective that day (Second Report, para. 10(v)).

What the receiver says it found

On April 20 the receiver was given access to the company's books and records, a laptop and a server. The company used two accounting systems, the Second Report says: PetroPlus, maintained by certain employees to track trade receivables and payables, and Sage, used mainly for payroll, year-end reporting and tax filings and maintained periodically by an independent contractor (Second Report, paras. 12, 16).

A May 5 letter from the receiver to the sole shareholder, attached to the report, identified "ten customers with aggregate balances of $2,558,960 per the AR Listing for whom the outstanding balance per PetroPlus is nil," and "a further ten customers with aggregate balances of $5,839,212 per the AR Listing, for whom the outstanding balance per PetroPlus is $753,503" (Second Report, App. E, p. 67). At a meeting on May 7, the report says, the sole shareholder tried in the receiver's presence to recreate the listing from PetroPlus, but "the report which he generated aligned with the Receiver AR Listing and did not align with the M&F AR Listing." The receiver says the sole shareholder was "unable to explain why" and, despite a follow-up on May 15, had provided no further information (id., para. 22).

On or about December 15, 2025, the report says, the company's external accountant gave the sole shareholder the review-engagement statements for the year ended April 30, 2025; on or about December 17, the sole shareholder gave TD's account manager a copy. The receiver "has determined that [the sole shareholder], or an individual acting on his behalf, adjusted the External Accountant FY25 Financials, increasing sales and purchases by $12,000,000 each," and noted no other variances between the two versions. "The Receiver has not discussed the Adjustment with [the sole shareholder] to date," the report adds (Second Report, paras. 23, 25–28).