Vertex Energy files for bankruptcy, explores sale
Vertex Energy has filed for bankruptcy in a Texas (U.S.) 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 MM 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-emissions biofuels.
Comments