PHRT Assures Continued Operations Amid Contract Renegotiations

Port Hamilton Refining & Transportation LLLP (PHRT) has issued a statement in response to a "plant closing" notice given by Pinnacle Services to its employees contracted to work for PHRT.

The notice, which was obtained by the Consortium, indicated a potentially significant impact on employment and operations at the refinery. The Consortium reached out to PHRT over the weekend after obtaining the Pinnacle notice, and PHRT emphatically stated that the notice is part of a strategic negotiation process rather than a definite decision to close the plant.

The statement clarifies that PHRT is currently in negotiations with potential investors and lenders for the planned restart of the refinery. These negotiations involve potentially renegotiating existing contracts, including the one with Pinnacle Services.

PHRT said it gave Pinnacle a 90-day notice of intent to cancel the contract to comply with the Virgin Islands Plant Closing Act and to give Pinnacle time to meet its obligations in case the contract is not renegotiated. The company likens this situation to the process of renewing a homeowner’s insurance policy, where a 30-day notice of policy cancellation is given even while renewal negotiations are ongoing.