Bankrupt Philadelphia refinery expects second insurance payment

This post was originally published on this site

https://i-invdn-com.akamaized.net/trkd-images/LYNXMPEFBC1K5_L.jpg

By Laura Sanicola

(Reuters) – Insurers of Philadelphia Energy Solutions (PES) have indicated they will make a second payment of $15 million from its property policy in connection to the June fire and subsequent shutdown of the plant, court documents showed.

The payout will be distributed among debtors who were insured under the company’s commercial property coverage policy, according to the documents.

Earlier this year, the insurers made an initial $50 million payment to the refiner, which is currently navigating Chapter 11 bankruptcy.

PES entered bankruptcy a month after a June 21 fire and series of blasts destroyed an alkylation unit at its massive refinery complex. Shortly after the blaze, the company requested an advance payment on $1.25 billion in property damage and business interruption insurance coverage, but it was denied.

The plant, which was the largest refinery on the U.S. East Coast, shut its last crude distillation unit in late July.

The refinery has since been put up for sale and has attracted interest from parties ranging from biofuels producers to real estate developers.

The company’s bankruptcy case hinges on receiving insurance proceeds for up to $1 billion for property damage and as much as $250 million for loss of business after the fire, according to earlier filings with the U.S. bankruptcy court for the District of Delaware.

Without the payouts, PES could be forced into Chapter 7 liquidation.

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.