A bankruptcy judge yesterday approved a settlement between Philadelphia Energy Solutions and the U.S. Environmental Protection Agency, paving the way for the largest oil refinery on the East Coast to emerge from bankruptcy protection, WSJ Pro Bankruptcy reported. Judge Kevin Gross of the U.S. Bankruptcy Court in Wilmington, Del., approved the settlement over the objection of an ethanol trade group that claimed the deal allowed the troubled refinery to skirt environmental compliance costs that its competitors still have to shoulder. Judge Gross, ruling from the bench, said that the settlement was fair and in any event, the trade group lacked standing to oppose the deal. The pact relieves Philadelphia Energy of the need to spend an estimated $175 million to make good on its environmental compliance obligations under the law. Justice Department lawyer Alan S. Tenenbaum yesterday acknowledged the conflict between environmental and bankruptcy statutory schemes but said that absent a deal allowing Philadelphia Energy to cut its Renewable Fuel Standard obligations by about half, the company would be at risk of shutting down. Read more.
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