- Seeks to Force Hilco Redevelopment Partners to Close Acquisition of Philadelphia Energy Partners on Existing Terms
- Objection to Revised Transaction Filed With Bankruptcy Court
- Judge Agrees to Delay Approval Hearing on Revised Hilco Transaction
NEW YORK, June 22, 2020 /PRNewswire/ -- Marble Ridge Capital LP ("Marble Ridge") today reported that, following its June 12, 2020 Letter to the Board of Directors of Philadelphia Energy Solutions (the "Company") in which it objected to Hilco Redevelopment Partners' ("Hilco") proposed purchase price reduction, it has filed an Objection in the Delaware bankruptcy court seeking to force Hilco to close the transaction on its existing terms. Marble Ridge is a major lender to the Company and will be a member of the Liquidating Trust Board after bankruptcy.
Marble Ridge has informed both the Company's Board and the Bankruptcy Court that Hilco intentionally and willfully delayed performance under the Asset Purchase Agreement to force a purchase price reduction. In a status conference today, the Judge overseeing the case, Hon. Laurie Selber Silverstein, agreed to delay the hearing to consider Marble Ridge's objection, as requested by Marble Ridge, and questioned Hilco counsel about the reason behind the price reduction and why COVID-19 would serve as an excuse for Hilco's performance in this case.
Marble Ridge stated, "Now, shamefully under the guise of the COVID pandemic and sour grapes, Hilco is seeking to blatantly disregard its contractual obligation at the expense of the Company's stakeholders and present them with the Hobson's choice to either accept Hilco's radically redefined and unfair economic terms or force the Company into an administratively insolvent liquidation where unsecured creditors would receive nothing."
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SOURCE Marble Ridge Capital LP