TPC asks court to reject sales agreement with Russia-based Lukoil

Chicago, Aug. 19 – TPC Group Inc. has a hearing on Sept. 13 to allow the company to reject a sales agreement the debtors had with Lukoil Pan Americas, LLC for methyl tert-butyl ether (MTBE), according to a motion filed with the U.S. Bankruptcy Court for the District of Delaware.

The agreement dates back to Feb. 2.

The sales agreement provided that TPC Group would sell MTBE to Lukoil each month depending on TPC’s anticipated amount of production.

Citing sanctions, the company is asking the court to allow TPC to reject the sales agreement.

Further, the company wishes to now do business with Trafigura Trading, LLC, with whom they have an existing sales contract.

The pricing formula when margins are high would make sales to Trafigura more favorable for TPC, and therefore the estate.

The hearing date is Sept. 13. The objection deadline is Sept. 1.

TPC Group is a Houston-based processor and service provider of value-added products derived from niche petrochemical raw materials. The company filed bankruptcy on June 1 under Chapter 11 case number 22-10493.

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