There are many reasons a Louisiana business could face economic hardships. In some cases, factors beyond the owner’s control may be the cause of the financial struggle. When these problems take a significant toll on a company, owners may choose to explore various options such as bankruptcy. A large East Coast oil refinery recently made the decision to file.
The company is reportedly the owner of the largest refinery on the East Coast of the United States. Owners cite the costs involved in renewable fuel laws as a major factor in the company’s debt problems. Reports indicate that the company also saw financial trouble after backers took out a large loan, improvements to the plant were made and money was invested in a new rail terminal.
According to representatives from the company, known as Philadelphia Energy Solutions, total obligations from 2016 and 2017 equal about $185 million. To help combat the debt, PES is in the process of filing for Chapter 11 bankruptcy. As part of this process, it plans to sell $150 million worth of credits. This could allow the business to restructure its finances while remaining open and saving the jobs of its many employees.
Whether a large corporation or small hometown business, owners must begin to explore their options when they find their company struggling financially. For many, bankruptcy can be a useful tool in finding debt relief. Those interested in learning more about Chapter 11 and other forms of bankruptcy could consult an experienced Louisiana attorney. In addition to providing more information, an attorney could also assist in the filing process.
Source: CNBC, “US refiner PES pins bankruptcy plan hopes on biofuel costs”, Jan. 22, 2018