PES Holdings committee recommends unsecured creditors reject plan

By Caroline Salls

Pittsburgh, Jan. 23 – PES Holdings, LLC’s official committee of unsecured creditors is asking holders of general unsecured claims to vote against the company’s plan of reorganization, according to a letter filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

“The committee needs your support to seek better treatment for class 5 general unsecured claims,” the letter said.

The committee said the plan does not offer the highest cash consideration for the PES debtors’ assets.

Specifically, the creditor group said substantially all of the company’s assets will be sold through the plan to an affiliate of Hilco for a cash consideration of $240 million, even though, at the auction, Industrial Realty Group, LLC made the highest bid with a cash consideration of $265 million.

In addition, the committee said the plan does not create an opportunity for restarting the PES refining complex, does not resolve issues surrounding insurance proceeds and could provide company executives with millions of dollars in bonus compensation.

“The committee believes you can do better,” the letter said.

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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