WILMINGTON, Del., March 26 (Reuters) - A U.S. bankruptcy judge approved Philadelphia Energy Solutions’ plan for Chapter 11 bankruptcy in a Delaware court on Monday, after a series of objections to the plan were withdrawn.
The confirmation in the U.S. Bankruptcy Court of Delaware removes the biggest hurdle for the Philadelphia refiner as it seeks to rebound from financial difficulty after filing in January, citing the high cost of complying with the nation’s biofuels obligations.
The state of Pennsylvania had filed an objection based on tax liabilities, but that was withdrawn.
The U.S. Environmental Protection Agency and the refiner had previously agreed to a settlement that allowed it to shed about half of its roughly $467 million in outstanding compliance costs under the U.S. Renewable Fuel Standard. The court has to approve this settlement as well, on April 4. (Reporting By Jarrett Renshaw Editing by Marguerita Choy)