3Jan
Simeone said the agreement makes it more likely that PES will
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g spot vibrator Philadelphia Energy Solutions reached agreement with the federal government to reduce its liability for buying renewable fuel credits, which the company blamed for its bankruptcy filing in January.The company said the deal will for now prevent possible closure, and save some 1,100 jobs, but doesn represent a long term fix to what it said was a flawed credit system. Bankruptcy court in Delaware on Monday.The agreement means that PES will not have to pay for about half of the credits that it currently owes the Environmental Protection Agency. The company bankruptcy filing assumed a $350 million reduction in those costs.The deal also allows for a 10 day public comment period after which the court will consider whether to approve the terms.Simeone said the agreement makes it more likely that PES will emerge from bankruptcy, but the ageing refinery, with its frequent outages, faces other challenges that won’t be resolved by a cut in its RFS obligation, she said.”If deemed legally permissible, shedding past RFS compliance costs will buy the refinery some time, but it will do nothing to change the fundamental challenges plaguing the facility,” she said.The market price of the credits, known as Renewable Identification Numbers, or “RINs”, has soared in recent years, piling financial pressure on PES and other refiners who say jobs are at risk because of the heavy expense.Under the agreement, PES will retire 138 million RINs before April 1, when it plans to emerge from bankruptcy, and another 64.6 million of the credits after that date.The dollar amount of the retiring credits varies depending on their market price, which has swung widely in recent years depending on market expectations of EPA policy on the instruments.Without an agreement, the government acknowledged that PES, owned by Energy Transfer Partners and the private equity firm Carlyle Group, would face a risk of liquidation. g spot vibrator
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