Bankrupt Philadelphia Energy Solutions says it will reimburse the city $1.8 million for the costs of emergency response last year after the South Philadelphia refining complex suffered a massive fire and explosion that led to its permanent closure.
Mark J. Smith, the refinery’s chief executive officer, said the company’s insurance carriers notified PES that they will reimburse the costs of the city’s response. The payment would require the approval of the U.S. Bankruptcy Court in Wilmington.
“The bankruptcy process is complex and we are diligently working the required steps to allow the payment to the city,” Smith said in an email Friday.
The city on Monday filed a motion with the bankruptcy court seeking payment from PES for $1.1 million, one of two invoices it sent to the refinery for emergency response. The Fire Department deployed more than 120 firefighters and more than 50 pieces of equipment to respond to the refinery fire on June 21, and hazardous materials crews remained on the site until Sept. 24, when the city formally declared the incident under control.