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PES Holdings – Second Amended Joint Prepackaged Plan of Reorganization Becomes Effective

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August 7, 2018 – PES Holdings’ Technically Modified Second Amended Joint Prepackaged Plan of Reorganization and New Intermediation Facility became effective and the Company emerged from Chapter 11 protection [Docket No. 521]. The Court had previously confirmed the Plan on April 2, 2018 [Docket No. 357]. In the period between confirmation and effectiveness, the Plan was technically modified to reflect the Debtors execution of a commitment letter with ICBC Standard Bank LLC relating to the New Intermediation Facility. As previously reported, “Pursuant to Article IX.A.6 of the Plan, entry into the New Intermediation Facility is a condition to the effectiveness of the Plan. The Debtors, with the assistance of their advisors, have been pursuing, since late December 2017, a competitive process aimed at identifying a suitable post-Effective Date counterparty to provide the New Intermediation Facility….The Debtors received comprehensive responses from two parties, and based on input from their advisors, stakeholders, and boards engaged in further negotiation with the counterparties. As a result of this process, on May 17, 2018, the Debtors executed a commitment letter with ICBC Standard Bank Plc (‘ICBCS’) (the ‘Commitment Letter’) expressing ICBCS’ commitment to provide the Debtors, subject to the execution of definitive documents and other customary conditions, with the New Intermediation Facility (the ‘ICBCS Facility’). ICBCS has conditioned its willingness to enter into the ICBCS Facility on this Court’s grant of an order modifying paragraph 86 of the Order Approving the Debtors’ Disclosure Statement for and Confirming the Second Amended Joint Prepackaged Chapter 11 Plan of Reorganization of PES Holdings, LLC and its Debtor Affiliates [Docket No. 357] (the ‘Confirmation Order’) to reflect the structure of the New Intermediation Facility consistent with the Plan Supplement and the Commitment Letter (the ‘Confirmation Order Modification’)….Moreover, obtaining the Requested Modifications is necessary to securing the commitments under the Commitment Letter. Approval of the Requested Modifications will allow for the Debtors’ entry into the New Intermediation Facility and pave the way to emergence from chapter 11….On the Effective Date, PES and the Reorganized Partnership will be reorganized into a structure in which PES will hold one New Membership Interest for each issued share of New Class A Common Stock.” This privately-held oil and petroleum refiner filed for Chapter 11 protection on January 21, 2018, listing more than $1 billion in prepetition assets.

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