Hi kids,

So, just when you thought it was safe to check the 
financial news...

There is some doubt as to whether the pending sale of 
the refinery at which I work will actually go through.

In their quarterly "earnings call" with securities 
analysts, Tesoro Petroleum mentioned taking every 
possible measure to improve liquidity. They just brought 
a refinery in Washington State back on line after a 
major (expensive) upgrade to enable them to process 
cheaper crude oil. And they are in the process of 
spending a bundle of money (just over $1 billion) to 
purchase us and 70 gas stations in Northern Calif.  The 
assumption behind both the WA refinery upgrade and the 
CA refinery purchase was decent "margins". Well, margins 
are down to half what they were a year ago.  Oops, 
liquidity crunch.

Valero (the current owner, who have been ordered by the 
Feds to sell us) issued a press release saying if the 
deal falls through, they will charge Tesoro a $53 
million break-up fee.

So, here we pawns are, in the middle, wondering if and 
when the deal will actually close. (It was supposed to 
have been April 19th, but the government types stalled. 
Now this.) 

We have all these IT timelines for the conversion, and 
actually quit re-publishing them until we know more for 
sure.

If the sale falls through, we go back under a Federal 
trustee and they look for another buyer.

Kinda stressful not knowing where you stand.

<sigh>

-Ben





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