Since July 24, 2019, at least three mechanics lien claims have been filed against a property owned by Thrift Oil Co. in Bloomington, CA. The lien claims total $1.7M in unpaid construction work as of July 2020.
The property with a posted lien claim is an industrial warehouse leased out by Thrift Oil Co., which is located 50 miles east of company headquarters in Santa Fe Springs, CA. The entire warehouse spans 371,442 square feet and is currently still under construction. A mechanics lien is used to prevent a property’s sale or refinancing until the claimant has received full payment.
During the COVID-19 pandemic, oil and gas companies have taken a financial hit. In July of 2020, Law firm Haynes and Boone LLP released a report that found at least 18 oil and gas producers filed for bankruptcy with $29B in debt for the second quarter of 2020.
Each mechanics lien claim against the Thrift Oil Co. property was processed with the San Bernardino County clerk’s office pursuant to California statutes governing mechanics lien filings.
Three Contractors Owed a Combined $1.7M at Thrift Oil Co. Project
The three subcontractors are allegedly owed a total of $1,723,832.06 for work taking place at an industrial property owned by Thrift Oil Co., located at 18550 Orange St, Bloomington, CA.
Subcontractor United Material Handling has filed the largest lien claim to date at $1,563,657.38. The lien was recorded on July 31, 2020.
According to United Material Handling’s lien affidavit, the contractor provided materials and installation services for an industrial storage rack. The subcontractor’s lien claim was filed against Unical Aviation.
The second-largest lien placed on the Thrift Oil Co. property was originally valued at $153,050 from HBI Construction, Inc. The subcontractor’s lien was partially released, now leaving them owed $122,439.57 from Garrett J Gentry General Engineering, Inc. as of January 2, 2020.
Chapman Painting filed the earliest known lien on the property from July of 2019, with an unpaid work claim valued at $37,735.11. The lien was filed against HBI Construction. Chapman Paintings’ lien carries a 7% prejudgment interest rate as of May 31, 2019, marking the date in which the balance was due.
Oil and Gas Companies Facing Bankruptcy in 2020
With the coronavirus pandemic still in full swing across the globe, many industries are taking a financial hit. The oil and gas industry is no exception, as several companies are now faced with bankruptcy filings after the second quarter of 2020.
In June of 2020, The Guardian reported that Chesapeake Energy Corporation had filed for bankruptcy with $9B in debts.
These notable bankruptcy filings come as oil and gas producers posted a combined $42.7B in debt accrued in Q2 of 2020.