Judge approves PES complex sale to developer, no plans to restart refinery

Author: Adam Burkin


HOUSTON (ICIS)--A US bankruptcy judge has approved, with no new objections, the sale of the Philadelphia Energy Services (PES) refinery complex to Hilco Redevelopment Partners, with no plans to revive commercial operations, according to media sources.

Hilco's final bid for the facility reached $252m, which the judge said was "much satisfied" with the sale. As part of the deal, the court approved a $29m settlement with PES' unsecured creditors, $5m of which will go to former refinery workers.

The Chicago-based industrial real estate developer has not disclosed plans  for the former production site, though storage or mixed-use development are possibilities, sources close to the matter say.

Prior to the June 21 fire last year which shut down the complex, the refinery was the US East Coast’s largest, operating 335,000 bbl/day of capacity, producing products which include propylene, benzene, other aromatics and cumene. Additionally, the facility has a cumene unit with a capacity of 612,000 tonne/year. The facility at the time employed more than 1,000 workers.

A Hilco representative was not immediately available for comment.


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