After Disastrous Fire, Firing 90% Of Workers, Bankrupt Philly Refinery Execs Want More Bonus Money

[hatrack]

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. “By no means will it be easy” for the executives to hit the target thresholds, said Jeffrey S. Stein, the chief restructuring officer hired by PES to manage the company’s reorganization.

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“I’m in disbelief,” said Ryan O’Callaghan, a spokesman for United Steelworkers Local 10-1, which represents refinery workers. “It’s just another kick in the gut from this management team. If they were honorable people, how about if everybody who worked there and put the fire out got a cut of the insurance proceeds?” The refinery’s most valuable asset is $1.25 billion in insurance covering property damage and for business interruption. The company’s insurance carrier has already paid a $50 million advance on an insurance settlement, which provided a crucial injection of cash to pay for ongoing expenses.

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https://www.inquirer.com/business/energy/philly-refinery-executive-bonus-pes-fire-bankruptcy-20191125.html

[Farmer-Rick]

1. The American filthy rich just can't get enough

Of screwing over everyone else.

Thanks capitalism for turning democracy into an oligarchy.

[safeinOhio]

2. Eat the rich, just joking....

no I'm not.