MOSCOW (MRC) -- The federal judge overseeing Philadelphia Energy Solutions’ bankruptcy proceedings on Friday resolved a fight between two sets of lenders over which of them has first dibs on the potential USD1.25 billion in insurance proceeds for a June 2019 explosion and fire at its Girard Point refinery, reported Reuters.
US Bankruptcy Judge Kevin Gross found that ICBC Standard Bank and Cortland Capital Market Services each hold a perfected security interest in the proceeds of the policy, which includes USD1 billion in property damage coverage and USD250 million in business insurance (BI) coverage.
As MRC wrote before, a June fire at the 335,000 barrel-per-day PES refinery led the company to file for bankruptcy and shut the plant over the summer, laying off more than 1,000 workers and ending long-standing ties with dozens of businesses. The refinery endured years of financial trouble, hurt by poor access to US crude oil production and heavy costs of complying with federal laws on blending biofuels with gasoline. The PES plan to exit bankruptcy includes a USD240 million sale of the refinery to a real estate developer, Hilco Redevelopment Partners, which is expected to use the site largely for warehousing. Los Angeles developer, Industrial Realty Group, was selected as a backup buyer.
Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,093,260 tonnes in 2019, up by 6% year on year. Shipments of all PE grades increased. PE shipments rose from both domestic producers and foreign suppliers. The estimated PP consumption in the Russian market was 1,260,400 tonnes in January-December 2019, up by 4% year on year. Supply of almost all grades of propylene polymers increased, except for statistical copolymers of propylene (PP random copolymers).
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