Pennsylvania says bankrupt refiner owes $3.8 billion in taxes: filing

Sep 2013
On a hill
MARCH 19, 2018 / 10:58 AM
Jarrett Renshaw

NEW YORK (Reuters) - The state of Pennsylvania wants a federal judge to halt the bankruptcy of Philadelphia Energy Solutions (PES), arguing the refiner owes an estimated $3.8 billion in fuel taxes, according to a court filing on Friday.


The tax issue stems from unpaid fuels taxes, interest and penalties from 2015 to January of this year, court documents show.

A state spokesman on Monday said it could not provide any more details beyond the filing because of taxpayer confidentiality.

The state needed to file a claim to ensure the tax liability is not forgiven as part of the bankruptcy, and the high figure was likely a bargaining tactic, Chris Ward, chair of the Polsinelli law firm’s bankruptcy group, said.


PES filed for bankruptcy protection in late January, blaming the costs of complying with the nation’s biofuels laws. The U.S. Environmental Protection Agency and the company struck a settlement last week, granting PES temporary financial relief.

Reuters reported that other factors may also have played a role in the bankruptcy, including the withdrawal of more than $590 million in dividend-style payments from the company by its investor owners.
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