Bankrupt Philly Refinery Sues Insurers for $1.25 Billion Payout

Bankrupt refinery Philadelphia Energy Solutions sued Lloyd’s, Liberty Mutual, Zurich American, and other insurers to get a $1.25 billion claim payout for a June explosion, advancing its creditors’ battle over the potentially huge pot of money.

The insurers don’t intend to make any more payments on the property damage and business interruption policy beyond the $65 million they’ve already paid for estimated rebuilding costs, PES Holdings LLC said in its Feb. 12 complaint.

The insurers said PES already was on a path to shutting down the Philadelphia refinery complex when the explosion and fire halted much of its operations, PES ...