Court Settles Rights to PES’ $1.25 Billion Insurance Claim

Philadelphia Energy Solutions’ creditor ICBC Standard Bank Plc has a first priority lien on proceeds from the business interruption portion of a $1.25 billion insurance policy, ahead of the bankrupt refinery’s term lenders, a bankruptcy judge has ruled.

Term lenders Cortland Capital Market Services LLC has a second priority lien on the business interruption policy proceeds, Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware ruled Feb. 28.

The term lenders have top priority over proceeds from property damages claims, except for certain specific property where ICBCS has top lien rights, according to the decision. ICBCS ...