On May 14, 2012 CVR Energy Inc. informed CVR Partners LP that it has determined not to proceed with a public offering of the LP’s common units at this time. Accordingly, the LP has submitted a letter to the Securities and Exchange Commission requesting the withdrawal of the LP’s Registration Statement on Form S-1, File No. 333-179930 and all exhibits thereto.
CVR Energy owns the LP’s general partner and approximately 70 percent of its common units representing limited partner interests. Prior to majority ownership by billionaire investor Carl Icahn, CVR Energy had planned to sell some of its LP shares and use the proceeds for a special dividend to CVR Energy shareholders.
In the meantime, a spokesman for CVR Energy and CVR Partners told Green Markets that the Coffeyville nitrogen plant may not be sold after all. A spokesman said while Icahn has said he would sell CVR Energy, and thereby its majority stake in CVR Partners, which owns Coffeyville Resources Nitrogen Fertilizers, that this is not the same as selling the nitrogen plant—which would be an entirely different process. It is a distinct subsidiary of CVR Partners. The spokesperson reiterated that Icahn has not stated that he actually plans to sell the nitrogen plant.
This was in response to a Green Markets story that indicated CVR Energy would be sold, including its majority stake in CVR Partners. The major asset of CVR Partners is the subsidiary Coffeyville Resources Nitrogen Fertilizers.
LSB Industries Inc. said today its El Dorado Chemical Co. subsidiary’s facility in El Dorado, Ark., suffered significant damage to its DSN concentrated nitric acid plant and surrounding equipment early this morning when a reactor at that plant exploded.
The company said none of its employees or anyone in the El Dorado community was injured, and the company believes there was no environmental release. It said it is determining the cause of the event and the extent of the damages. The company does not have an estimate on the extent of the damages or the repair time, but at this time the El Dorado facility is out of operation due to the damage, and it is unknown at this time how long the El Dorado facility will be out of production.
LSB has notified its insurer of this event. The company’s insurance policy, which provides replacement cost coverage, has a $1 million deductible for property damage. The company’s business interruption insurance covering certain lost profits and extra expense has a 30 day waiting period. The company said it will issue further communication about this event as warranted.
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