Greenebaum attorneys serve as debtor counsel to Kentucky refinery
Greenebaum attorneys Gregory Schaaf, Richard Boydston and Andrew Stosberg have been retained to serve as debtor counsel for Somerset, KY based PHS Group Inc., a subsidiary of USA Energy Corp.
A month after purchasing PHS, USA Energy Corp. has had to provide $2 million in debtor-in-possession financing to the holding company for the Somerset Refinery in Kentucky because of its fall into bankruptcy.
PHS' main operating unit is the 71-year-old Somerset Refinery, which buys crude oil from suppliers in eastern Kentucky, West Virginia and Tennessee and processes it for sale. The refinery produces three octane levels of gas and diesel, as well as other byproducts.
USA Energy hopes to restart the refinery, but it's likely that more money and another lender will have to be enlisted for that to happen.
PHS, whose equity was acquired by USA Energy in April 2007, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Eastern District of Kentucky in London on Tuesday, May 8, 2007.