Following the recent fire and explosion at PES Energy, the company has announced that it filed for Chapter 11 bankruptcy protection on Sunday. The company is the largest oil refinery on the eastern seaboard.

The company’s bankruptcy announcement also included its subsidiary, Philadelphia Energy Solutions Refining and Marketing LLC. This is the second bankruptcy filing for the company within a year and a half. PES Energy emerged from its first bankruptcy in August 2018.

Through the bankruptcy announcement, PES Energy has secured debtor-in-possession (DIP) financing up to $100 million. The company said it has “a strong financial foundation to support existing operations.” PES Energy also said it is “safely positioned” to rebuild, restart, and complete the reorganization process.

With the DIP financing agreement, the company expects to work with its insurers, stakeholders, and third parties to create an agreed-upon strategy within the coming weeks to rebuild its damaged infrastructure and resume its refining operations.

PES Energy has liabilities of between $1 billion and $10 billion, and up to 5000 creditors, CNN reported. Before the fire, it held two refineries in the Philadelphia area, producing a reported 28 percent of the Northeast’s gasoline supply at 335,000 barrels a day.

The company said the recent fire and explosions at its alkylation unit caused significant property damages that impacted its “liquidity” and caused the oil refinery to suspend operations. PES Energy said it plans to rebuild the facility through the restructuring process.

“Today’s agreement provides PES Energy with the additional financing and liquidity necessary to ensure we can safely wind down our refining operations and, with the support of our insurers and stakeholders, best position the Company for a successful reorganization, the rebuilding of our damaged infrastructure, and a restart of our refining operations,” Mark Smith, CEO of PES Energy said in a statement.

“We will continue our ongoing cooperation with the federal, state and city governmental agencies investigating the June 21 accident and thank them and our employees for their diligent efforts at this difficult time. The success of our plan is critical to energy supply and security for the region, the Commonwealth of Pennsylvania and the City of Philadelphia,” he added.

PES Energy previously said it planned to sell the damaged refinery, CNN reported. After the fire, a reported 150 workers were let go from the refinery, leaving 950 employees.

PES Energy has hired Kirkland & Ellis LLP as its legal advisor with Alvarez & Marshal servicing as its restructuring advisor. The company is also working with PJT Partners, which is the investment banker for the refinery with Davis Polk & Wardwell LLP and Houlihan Lokey Capital, Inc. as PES Energy’s DIP financing lenders.

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