Philly refinery sale expected to close next week for $27.5 million less

Commodities & Futures
© Reuters. FILE PHOTO: Sun sets on the Philadelphia Energy Solutions plant refinery in Philadelphia © Reuters. FILE PHOTO: Sun sets on the Philadelphia Energy Solutions plant refinery in Philadelphia

By Laila Kearney

NEW YORK (Reuters) – A sale of the Philadelphia Energy Solutions oil refinery site to real estate developer Hilco is expected to close next week for $ 27.5 million less than planned, the bankrupt refiner said in a court filing.

Hilco Redevelopment Partners won an auction in January to buy the 1,300-acre (526-hectare) south Philadelphia refinery with plans to transform it into a mixed-use industrial park. It agreed to pay $ 252 million for the site.

The Chicago-based developers, citing economic uncertainty caused by the coronavirus pandemic and higher-than-expected environmental costs tied to cleaning up PES land, asked to amend the agreement and delay the sale earlier this month, the filing said.

PES agreed to lower the price contingent partly on Hilco finalizing the deal by June 26. The United States Bankruptcy Court for the District of Delaware must sign off on the amended sale agreement.

The refiner shut its 335,000 barrel-per-day refinery, the largest and oldest on the East Coast, and filed for Chapter 11 bankruptcy last summer after a fire at one of its fuel processing units badly damaged the plant and leaked toxic chemicals into the air.

More than 1,000 workers were laid off, including 640 United Steelworkers members. Executives of the company, which had just emerged from a separate bankruptcy at the time of the June 21 blaze, have received millions of dollars in bonuses since the shutdown.

Union workers, who were let go without access to extended health benefits typically given to laid-off employees, will receive several thousand dollars apiece in transition pay after the sale is finalized, according to the original agreement.

It’s not clear whether that amount will be affected by the amended sale agreement.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Let’s block ads! (Why?)

Commodities & Futures News

Leave a Reply

Your email address will not be published. Required fields are marked *