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SOMERSET, Ky. -- Upon the filing of Chapter 11, Tranzon Asset Advisors was appointed by the U.S. Bankruptcy Court to sell at absolute auction the assets of PHS Group Inc. and its subsidiaries including The Somerset Refinery Inc. and Somerset Oil Inc.
Somerset celebrated 50 years operating one of the only two refineries in Kentucky, and served the needs of small and midsize crude oil producers in Eastern Kentucky and Tennessee.
"Pipeline and barge providers of crude oil do not serve Eastern Kentucky or Tennessee in this geographic area. There is a significant underserved marketplace for the buyers," Ed Durnil, the court-appointed auctioneer and CEO of Tranzon Asset Advisors, said in a statement.
The auction team and stakeholders formulated a multiple lot or parcel offering for the assets of Somerset Oil. The first lot consists of a 5,500 barrel-per-day petroleum refinery situated on approximately 105 acres of land in the heart of Somerset, Ky., and includes all furniture, fixtures and equipment along with the maintenance and repair shops associated with the plant’s operation.
Also on the auction block are 12 gas stations in various locations throughout eastern Kentucky. The stations are being offered in two auction formats—they can be bought separately or as a block by submitting sealed bids to Tranzon. If acceptable bids are not received for the stations, each will be sold at a live outcry auction at the site the week following the refinery auction, according to Tranzon.
Sealed bids are due Sept. 19, 2008, to the offices of Tranzon Asset Advisors. Bidders may obtain due diligence from Tranzon through its Web site: www.tranzon.com or by calling (866) 243-8243 or (270) 769-0284.