Philadelphia Energy U.S. Trustee says procedures ‘discourage’ bidders

By Caroline Salls

Pittsburgh, Nov. 8 – Philadelphia Energy Solutions. LLC subsidiary PES Holdings, LLC’s asset sale procedures motion drew an objection Thursday from acting Region 3 U.S. Trustee Andrew R. Vara, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

“The motion proposes an unreasonable deadline for the designation of a proposed stalking horse,” Vara said in his objection “The motion does not provide a formula for any potential alternative bidder to make an initial qualifying overbid.”

In addition, the U.S. Trustee said the motion contains no proposed auction procedures except to note in the proposed timeline that if there is an auction, it will be at “a date and time to be determined...and announced no later than one business day prior to the auction.”

“The result of these deficiencies will tend to discourage rather than encourage potential bids,” the objection said.

The bid procedures hearing is scheduled for Nov. 14.

PES subsidiary Philadelphia Energy Solutions is a Philadelphia-based owner and operator of the Philadelphia refinery complex. The company filed bankruptcy on July 21 under Chapter 11 case number 19-11626.

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