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.