Andrew Maykuth reports for the Philadelphia Inquirer
November 25, 2019
Bankrupt Philadelphia Energy Solutions is seeking a new round of bonuses that would pay seven top executives millions of dollars, depending upon the success of a plan to reorganize or sell the company.
The refinery, in a filing Friday with the U.S. Bankruptcy Court, wants to create a bonus pool for the seven key employees whose payouts would be based upon how much the refinery fetches from a sale and in insurance proceeds. The bonus pool would range from $2.5 million to as much as $20 million if the refinery generates $1 billion in net proceeds from a sale and insurance policies.
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The PES executives were already paid $4.59 million in retention bonuses after a catastrophic June 21 fire that led to the plant’s closure and bankruptcy filing, which resulted in all but 175 of the refinery’s 1,100 employees losing their jobs. The company’s chief restructuring officer told the court that it is “essential” to create a new bonus plan tied to the greatest recovery of money for the refinery’s creditors.
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