Vertex files for bankruptcy, considers sale of Alabama facility
September 25, 2024
BY Erin Voegele
Vertex Energy Inc. on Sept. 24 announced that it has filed for Chapter 11 bankruptcy in the U.S. bankruptcy Court for the Southern District of Texas and is exploring the possible sale of its refinery in Mobile, Alabama. The move comes only months after the company announced it would shelve renewable diesel production and return the facility to fossil service.
In its Sept. 24 announcement, Vertex said it has entered into a restricting support agreement (RSA) with 100% support of the company’s term loan lenders. To facilitate the transactions contemplated under the RSA, including the exploration of a sale transaction, Vertex commenced Chapter 11 bankruptcy proceedings.
Vertex in mid-2021 announced an agreement to acquire the Mobile refinery and convert a portion of it to renewable diesel production. The renewable diesel unit began operations in Spring 2023. In June 2023, Vertex announced it had completed the first series of commercial sales transactions of renewable diesel. The following month, the company announced the renewable diesel unit had achieved its phase 1 capacity target of 8,000 barrels per day. The company previously announced plans for a phase 2 expansion that would have expanded production capacity to 14,000 barrels per day by the first quarter of 2025.
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The renewable diesel conversion project was designed to allow Vertex to redeploy the facility’s renewable equipment back into conventional production. Citing current market conditions, Vertex earlier this year announced it had elected to pause renewables production at the Mobile refinery. The company on Aug. 8 announced it had ceased renewable diesel production and was working to convert its hydrocracker back to conventional service. At that time, Vertex said it expected the Mobile refinery to resume fossil feedstock processing before the end of the year.
A full copy of Vertex’s Chapter 11 bankruptcy announcement is available on the company’s website.
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