Vertex Energy files for bankruptcy, explores sale

Vertex Energy

25/09/2024 03:38

Sept 24 (Reuters) - Vertex Energy  VTNR.O  has filed for
bankruptcy in a Texas court, just months after it paused
renewable diesel output at an Alabama refinery over
macroeconomic woes, the U.S. refiner said on Tuesday.
    Vertex said it will also explore a sale as part of a
restructuring agreement with its lenders. 
    The company is set to receive $80 million from
Debtor-In-Possession (DIP) financing from lenders to fund
bankruptcy proceedings and continue operations, the refiner said
in a statement. 
    In May, Vertex paused renewable diesel production at its
refinery in Mobile, Alabama, citing macroeconomic woes which the
company said might persist through next year.
    Renewable diesel can fully substitute traditional diesel,
but it is much more expensive to make, and therefore, relies on
government blending mandates and subsidies.
    A number of U.S. companies rushed to convert refineries into
renewable diesel plants in recent years, betting on higher
demand for the fuel from governmental policies designed to speed
the transition away from fossil fuels. 
    This has led to a supply glut, outpacing demand for
low-emmission biofuels.




 (Reporting by Shariq Khan in New York and Gursimran Kaur in
Bengaluru; Editing by Rashmi Aich)
 ((GursimranKaur.Mehar@thomsonreuters.com;))