Jan 23, 2020

Hilco Redevelopment Partners to pay $240 million for Philadelphia Energy Solutions

Dan Primack, author of Pro Rata

Photo: Getty Images

Hilco Redevelopment Partners will pay $240 million to buy Philadelphia Energy Solutions, a 5,000 acre oil refinery property in South Philadelphia, per bankruptcy court documents.

Why it matters: PES was the East Coast's oldest and largest oil refinery, before being partially destroyed by a fire and explosions last year. There had been hopes that this sale process would find a buyer interested in rebuilding and restarting the plant, which had employed around 1,000 people, but Hilco says it has no plans to do so.

  • This is the property you often see when flying into Philadelphia's airport.

The bottom line: PES once was an acclamatory story for The Carlyle Group, which in 2012 struck a deal with Sunoco to kept oil flowing and people employed (including hundreds of union steelworkers).

  • But a conflicted real estate arrangement with a Carlyle-backed rail terminal contributed to a 2018 bankruptcy, as did new renewable energy regulations, from which a bruised PES emerged before last summer's disaster led by yet another Chapter 11.

Update: Some PES creditors oppose the Hilco deal, per Reuters.

Go deeper: Climate change expected to drive private equity away from fossil fuels

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Updates: George Floyd protests continue for 9th day

Demonstrators march on Pennsylvania Avenue on June 3. Photo: Tom Williams/CQ-Roll Call, Inc via Getty Images

Largely peaceful protests over the death of George Floyd and other police-related killings of black people continued Wednesday, marking nine straight days of demonstrations.

The latest: As several major cities moved to lift curfews, NYPD officers "aggressively" dispersed large crowds in Brooklyn and Manhattan beyond New York City's 8 p.m. curfew, per the New York Times. The National Guard was stationed outside many protests Wednesday night, including in Hollywood and Atlanta.

Trump hits back at Mattis: "I gave him a new life"

President Trump speaks at the White House. Photo: Doug Mills - Pool/Getty Images

President Trump unloaded on his former defense secretary via Twitter on Wednesday, hours after James Mattis condemned him for making a "mockery of our Constitution" in his response to mass protests in the wake of George Floyd's killing.

What he's saying: "Probably the only thing Barack Obama & I have in common is that we both had the honor of firing Jim Mattis, the world’s most overrated General. I asked for his letter of resignation, & felt great about it. His nickname was 'Chaos', which I didn’t like, & changed it to 'Mad Dog'"

Obama praises young protesters, urges mayors to pursue police reforms

Former President Barack Obama called on all mayors to review their use-of-force policies and commit to policing reform in a virtual town hall Wednesday hosted by the Obama Foundation's My Brothers Keepers Alliance.

Why it matters: Obama has addressed the killing of George Floyd and the nationwide protests that followed on social media and in a Medium post, but this was his first time speaking about the past week's events on camera. His voice will add weight to the growing pressure on local, state and federal officials to pursue policing reforms.