PES Holdings, LLC (d/b/a Philadelphia Energy Solutions) has, along with eight of its subsidiaries and affiliates, filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Lead Case No. 18-10122). Headquartered in Philadelphia, PA, PES operates the largest oil refining complex on the East Coast and is the tenth largest refiner in the United States. PES’ Petition estimates both its assets and liabilities to be between $1 – $10 billion. PES enters bankruptcy with a prepackaged Plan of Reorganization. According to PES’ Disclosure Statement, the Plan is supported by “100% of the outstanding Term Loan A Claims and over 90% of the outstanding Term Loan B Claims,” who have entered into an Restructuring Support Agreement with PES. The Disclosure Statement also explains that the Plan contemplates a debt for equity swap, which will reduce PES’ anticipated debt service obligations by approximately $35 million per year and relieve PES of debt maturities through 2022, and will also provide an infusion of approximately $260 million in capital to PES. A First Day Declaration has not yet been filed. Rust/Omni is the proposed claims and noticing agent. The cases have been assigned to the Honorable Kevin Gross.
Contact Norman L. Pernick or Nicholas J. Brannick for more information regarding this matter. Please note, however, that Cole Schotz P.C. does not represent the debtors in these cases and cannot respond to questions directed toward the debtors.