PES Holdings wins court approval to cut purchase price $26.5 million

By Caroline Salls

Pittsburgh, June 25 – PES Holdings, LLC obtained court approval of an amendment that reduces the base purchase price for the 100% equity interest in the company by $26.5 million, according to an order filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

The amendment calls for a closing date of June 26.

PES said in the amendment motion that it worked to complete the sale under the original purchase agreement and believes that all conditions to buyer HRP Philadelphia Holdings, LLC’s obligations to close, other than closing deliverables, have been satisfied.

However, the company said HRP “has taken the opposite position.”

In addition, HRP claims that if it was to terminate the original agreement, it would be entitled to the return of its deposit.

“The debtors believe that under these circumstances it would be challenging to compel the purchaser to close the sale transactions as reflected in the original agreement, and that the debtors would face a challenge to their retention of the deposit,” the motion said.

“In addition, the debtors are cognizant that seeking specific performance would likely require additional financing commitments to fund the necessary litigation.”

PES subsidiary Philadelphia Energy Solutions is a Philadelphia-based owner and operator of the Philadelphia refinery complex. The company filed bankruptcy on July 21, 2019 under Chapter 11 case number 19-11626.

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