Delaware U.S. Bankruptcy Court Judge Kevin Gross approved a request by Philadelphia Energy Solutions for a $65 million loan from debtor-in-possession financing Tuesday, as the company’s Chapter 11 case opened in Wilmington.
The company says the goal after Chapter 11 reorganization is to rebuild and continue to operate its South Philadelphia refinery complex.
In June, after a fire and explosions destroyed 57 percent of its capacity, the company announced it would shut down operations at the 1,300-acre complex, which consists of two refineries. The fire affected the alkylation unit at the Girard Point refining facility, which is currently inoperable and will require extensive rebuilding, according to the company. The Point Breeze facility is working with limited capacity.
The intention is to “continue to run it and process for as long as we have the inventory and the liquidity,” said Jeffrey S. Stein, a financial advisor focused on distressed debt who has been named chief restructuring officer by Philadelphia Energy Solutions’ parent company, PES Holdings LLC..
Before the fire, the PES complex produced a little more than one-quarter of the fuel consumed on the East Coast and employed roughly 1,000 workers.
Click here for the full story from WHYY.