A deal to sell the Philadelphia Energy Solutions (PES) oil refinery to a Chicago-based real estate developer is expected to close today for $26.5 million less than originally agreed to, lawyers for the bankrupt refiner said in court yesterday, Reuters reported. The sale to Hilco Redevelopment Partners (HRP) would end the prospect of a restart of the 335,000-barrel-per-day south Philadelphia refinery, the largest and oldest on the East Coast, which was idled a year ago after a fire badly damaged the plant. PES agreed to reduce the purchase price to $225.5 million, $26.5 million less than agreed upon earlier this year. HRP requested a reduction due to economic uncertainty caused by the coronavirus pandemic and higher-than-expected costs to clean up the refinery site. Earlier this month, the two sides asked the U.S. Bankruptcy Court for the District of Delaware to cut the purchase agreement by $27.5 million but settled overnight on the current price tag, lawyers for the refiner said. The court approved the new agreement. PES filed for bankruptcy and shut its refinery after a series of explosions and fire at one of its gasoline processing units on June 21, 2019. More than 1,000 full-time employees were laid off, including 640 United Steelworkers members.
