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PES Holdings seeks approval of $435,000 key employee retention plan
By Caroline Salls
Pittsburgh, Jan. 16 – PES Holdings, LLC requested court approval of a program that would pay bonuses to non-insider key employees working on hydrocarbon extraction, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.
PES said it reached an agreement in November to work with ICBC Standard Bank plc to extract hydrocarbons owned by the bank on the PES premises.
The extraction work is expected to be completed in April.
According to the motion, ICBC has agreed to reimburse PES for some costs associated with the extraction of its hydrocarbons, including some retention payments to key non-insider employees who must be retained because of their unique skillset. The company said these skills are essential to successfully and efficiently extracting the hydrocarbons.
PES said the proposed key employee retention plan is necessary for it to retain these key employees “at this critical juncture.”
“Preserving this institutional and technical knowledge–at a maximum cost of no more than $435,000–is crucial to the extraction of the hydrocarbons in accordance with the applicable safety standards and regulatory obligations,” the motion said.
In addition, PES said it believes the retention plan will accelerate the process of extracting the hydrocarbons and the subsequent sale of the initial inventory, thereby allowing the company to earn an incentive fee from ICBC for barrels extracted and sold within 125 days.
The company said plan-eligible employees represent about 12% of its total current workforce.
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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