The largest oil refinery on
the U.S. East Coast will file for Chapter 11 bankruptcy, and Philadelphia
Energy Solutions LLC, owner of the complex, claims the Renewable Fuel Standard
is to blame. Since 2012, Philadelphia Energy Solutions has spent more than $800
million on credits to comply with the law, making it the refiner's biggest
expense after the purchase of crude, according to Reuters. The company owns two
refineries and can convert about 335,000 barrels of crude oil per day to
products such as gasoline, jet fuel and diesel, employing about 1,100 people. The
bankruptcy comes six years after a private equity firm, along with others,
rescued the company from financial distress in a deal supported by tax breaks
and grants. Following an agreement with its creditors, the company has secured
access to $260 million in new financing, and said it expected the bankruptcy
filing to have no immediate impact on its employees.
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