August 29, 2019 / 5:12 PM / 3 months ago

Philadelphia Energy Solutions gauges interest for sale

FILE PHOTO: A bird flies above the Philadelphia Energy Solutions plant refinery in Philadelphia, Pennsylvania, U.S., August 21, 2019. REUTERS/Mark Makela

(Reuters) - Troubled refiner Philadelphia Energy Solutions said on Thursday it has started a process to solicit interest from potential suitors for the company or its assets.

The move to find a buyer has assumed urgency as the company’s funds dwindle and no signs have emerged that it is winning a fight for insurance payouts following a massive fire that prompted it to close the largest refinery on the U.S. East Coast.

At least three parties have potential proposals to buy the shut Philadelphia refinery, sources told Reuters earlier this month.

PES, which filed for Chapter 11 bankruptcy in July, had exited a previous bankruptcy in August last year.

PES on Thursday said it is also evaluating options including the rebuild of its infrastructure damaged in June and restarting the complex.

The company has retained PJT Partners as its investment banker to help with the solicitation process.

On Wednesday, the company’s former Chief Executive Officer Philip Rinaldi said he was looking to buy and restart the 335,000 barrel-per-day refinery.

Reuters reported last week biofuels producer S.G. Preston Co is proposing to acquire the fire-damaged refinery and convert it to make renewable diesel and jet fuels.

Reporting by Debroop Roy and Shanti S Nair in Bengaluru; Editing by Shounak Dasgupta and Shailesh Kuber

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