ORION REFINING CORPORATION

Case Highlights

• Prepared company for and managed its bankruptcy process
• Sale of substantially all company assets yielded $700 million in cash and preferred stock

Case Narrative

Orion Refining Corporation, a Delaware corporation, owned and operated the largest independent refinery in the United States, which was located in Norco, Louisiana.  The refinery was designed to process approximately 155,000 barrels of heavy sour crude oil per day.

Orion Refining retained DSI to serve as the Chief Restructuring Officer, reporting directly to the Board of Directors. DSI worked very closely with the CFO, COO and CEO to prepare for and manage a bankruptcy process.  This included the negotiation of three alternative DIP financing arrangements and preparation of numerous first day motions.  DSI worked closely with the secured lenders/owners as well as with the $50 million in unsecured trade creditors.  The sale of substantially all of the assets provided the debtor with proceeds of approximately $450 million including cash, $250 million of Valero mandatory preferred stock and a possible $175 million earn out.  DSI and the officers and directors worked with Citigroup and Lehman Brothers to issue and liquidate these positions through the public markets.  DSI also worked with contractors to complete a major construction project that was required as part of the sale process.