The bankrupt Philadelphia Energy Solutions oil refinery is in search of a minimum of $2.5 million in bonus funds to the refiner’s top executives as a part of a plan to reorganize or sell the corporate, U.S. bankruptcy court filings show.
This may signify a potential second round of bonuses for PES executives, who had been already paid around $4.5 million in retention awards after a massive June fire that resulted in the plant’s shutdown. PES laid off hundreds of employees without severance pay or benefits following the fire.
The newest round of bonuses can be paid if PES confirms a reorganization within 15 months of its July Chapter 11 bankruptcy filing, in accordance with documents filed with the U.S. Bankruptcy Courtroom for the District of Delaware Friday.
The $2.5 million could also be paid if PES secures a minimum of $300 million in net proceeds from a sale, insurance proceeds or other funds, together with a suit the refiner filed against the federal authorities over excise taxes, the documents show.
Under the plan, CEO Mark Smith would obtain 29% of any incentive bonuses, PES board of directors Chairman Mark Cox gets 25%, Chief Financial Officer Rachel Celiberti 18%, and attorney Anthony Lagreca would get 14%. Three different employees would obtain smaller amounts.
PES entered bankruptcy on July 21 and closed its last crude distillation plant later that month. The refinery has since been put up for sale and has attracted interest from over a dozen parties, ranging from biofuels producers to real estate players.
Bonus payments to the executives would enhance by 2.5% on every greenback above the $300 million in net proceeds minus bills.
Smith would get a $725,000 cost under the minimum payment and as much as $5.8 million if the net incomes hit $1 billion.