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UPDATE 2-Pennsylvania Says Bankrupt Refiner Owes $3.8 bln in Taxes – Filing

Business News/Analysis, Federal Litigation, Pennsylvania
March 20, 2018
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by  Jarrett Renshaw (Reuters)  The state of Pennsylvania wants a federal judge to halt the bankruptcy of Philadelphia Energy Solutions (PES), arguing the refiner owes an estimated $3.8 billion in fuel taxes, according to a court filing on Friday.

The state’s Department of Revenue said the refiner must make several changes to the proposed restructuring plan to ensure the taxes are paid before it can support the plan.

…

PES filed for bankruptcy protection in late January, blaming the costs of complying with the nation’s biofuels laws . The U.S. Environmental Protection Agency and the company struck a settlement last week, granting PES temporary financial relief.

Reuters reported that other factors may also have played a role in the bankruptcy, including the withdrawal of more than $590 million in dividend-style payments from the company by its investor owners.  READ MORE

Ethanol groups oppose proposed PES RVO settlement (Ethanol Producer Magazine)

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