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

Sep 2013
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MARCH 19, 2018 / 10:58 AM
Jarrett Renshaw
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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.

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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.

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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.

https://www.reuters.com/article/us-...wes-3-8-billion-in-taxes-filing-idUSKBN1GV2EM
 
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