US East Coast refiner files for bankruptcy protection

22 January 2018 18:15 Source:ICIS News

HOUSTON (ICIS)--Philadelphia Energy Solutions filed for bankruptcy protection under Chapter 11 late on Sunday.

The company owns a refinery in Philadelphia, Pennsylvania, that has a throughput capacity of 335,000 bbl/day. The complex also has a cumene capacity of 612,000 tonnes/year, according to ICIS.

The refiner's initial bankruptcy filing did not explain why the company was seeking protection. However, media reports said the company attributed its bankruptcy to government mandates that required it to add ethanol to its gasoline.

Reuters reported that Philadelphia Energy Solutions does not have enough cash to comply with the mandate.

Philadelphia Energy Solutions estimated that the value of both its debts and assets are $1bn-10bn.

Philadelphia Energy Solutions is owned by a joint venture made up of The Carlyle Group and Energy Transfer Partners.

Philadelphia Energy Solutions filed for bankruptcy protection in US Bankrupty Court, Delaware District. The case number is 18-10130.

By Al Greenwood