Delek Restructures Debts

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Delek Restructures Debts

02/26/2009
NASHVILLE, Tenn. -- Delek US Holdings Inc. arranged new terms for some debts to help deal with the results of a deadly fire last fall at the company’s Tyler, Texas refinery, according to a report in the Nashville Business Journal.

The Nov. 20, 2008 fire at the 60,000-barrel-per-day refinery killed one employee and shut down production at the facility.

Last December, Delek, owner of Mapco Express Inc. and a subsidiary of Israel-based Delek Group, said production at the refinery may begin again in May. The amended agreement with lender SunTrustBank gives Delek until September to re-start operations at the refinery, according to filings with the United States Securities and Exchange Commission.

The deal also allows Delek to move certain assets to other divisions of the company, and confirms that the property maintenance agreements with the lender don’t apply until the refinery is operating again, according to the report. Delek will be paying higher interests rates and fees under the agreement.