September 3, 2008 at 10:13 am #3448
5,500-barrel capacity Ky. refinery to be auctioned
The Associated Press SOMERSET, Ky. — September 2, 2008A small south-central Kentucky oil refinery will be auctioned in late September as part of bankruptcy proceedings.
A press release from Edward Durnil, the court-appointed auctioneer at Tranzon Asset Advisors, says the auction for the Somerset Refinery, which has a 5,500-barrel per day refining capacity, is being advertised around the world. Durnil said refinery sales are rare, so he doesn’t know how much this one might bring.
“I’ve heard estimates everywhere from $5 million to $6 million to ‘the sky’s the limit,'” he told the Lexington Herald-Leader. The auction is part of a bankruptcy proceeding that began in May 2007. “There were some cash-flow problems that created a bottleneck in paying crude suppliers,” said Ellen Arvin Kennedy, the attorney for the trustee in the case. The refinery is one of two in Kentucky and 149 in the United states.
As refineries go, Somerset “is certainly on the small scale,” said Steve Higley of the National Petrochemical & Refiners Association. Most of its oil comes from small and mid-size wells in eastern Kentucky and Tennessee.
Other property, including area gas stations, tankers, and refined oil, will be auctioned separately. Carrol Estes, executive director of the Somerset-Pulaski Development Foundation, said it is important that the refinery, which had employed 178 people, begin operating again.
“We will be at the auction,” he said. “Whoever is there, we’re going to … tell them we have some incentives if they put it back in operation.”
Information from: Lexington Herald-Leader, http://www.kentucky.com
September 3, 2008 at 1:27 pm #6616
One of my Refinery contacts had this version with a lot more details on the Auction assets :
September 3, 2008
CSP Daily News FLASH
SOMERSET ORDERED TO SELL REFINERY, 12 STATIONS
SOMERSET, Ky. — A U.S. Bankruptcy Court has ordered the sale at
“absolute auction” of the assets of PHS Group Inc. and its
subsidiaries, including The Somerset Refinery Inc. and Somerset
Oil Inc., Somerset, Ky. The sale includes 12 gas stations
located throughout eastern Kentucky and a 5,500 barrel-per-day
The Chapter 11 Trustee, William D. Bishop, upon order of the
court, has employed Tranzon Asset Advisors, a national
real-estate auction firm, to market the assets. The auction team
and stakeholders formulated a multiple lot or parcel offering
for the assets of Somerset Oil.
Lot 1 consists of the refinery. Lots 2 and 3 are the company
offices and warehouse. Lot 4 is the full right, title and
interest in a pipeline easement. Lot 5 is all the company’s
rolling stock that includes more than 100 vehicles. Lot 6 is the
current inventory from Somerset Oil, which was a significant
Pennzoil distributor, as well as refined oil stocks currently at
a warehouse facility on the refinery grounds.
Lot 7 consists of the 12 retail sites. The stations are being
offered in two distinct auction formats. First, they can be
bought separately or as a block by submitting sealed bids to
Tranzon. If acceptable bids are not received for each station,
they will be sold at a live outcry auction at each site the week
following the refinery auction.
Watch for details in tomorrow’s CSP Daily News.
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