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Grunberg Realty Affiliates Purchase Historic Somerset Oil Refinery
On Friday, November 14th, Michael Grunberg, managing principal of
Grunberg Realty, in New York City, announced the successful closing
on the Somerset Refinery and associated business units. This
closing could not have been effected without the invaluable
involvement of Congressman Hal Rogers, Senators McConnell and
Bunning and many others. They’re dealing with the EPA and the EPA’s
eventual understanding of the unique nature of the circumstances
surrounding this purchase allowed this closing to occur. The
acquisition includes the Somerset refinery, several office
buildings, a fleet of tanker trucks and 12 retail gas stations all
in the Commonwealth of Kentucky. Mr. Grunberg stated, “It is our
intention to have the refinery in full operational mode, as well as
three core business units; Somerset
Somerset Oil Refinery was first opened in the 1930’s and at one time employed over 170 local workers. It is capable of refining up to 85 Million gallons of crude oil each year, producing different octane gasoline, diesel, kerosene and heating oil with potential gross sales of $200 million. The refinery is one of two in the state of Kentucky and one of only 149 oil refineries in the United States. The Somerset Oil Refinery ceased operations over 18 months ago and entered bankruptcy in the spring of 2007. Mr. Grunberg recognized that one of the contributing factors to the termination of operations at the refinery was the lack of funds deployed by previous management. With the emergence from the bankruptcy with a clean balance sheet and the commitment of the necessary capital, Mr. Grunberg is confident that the refinery will develop into a healthy and desirable asset to build on and invest in. “We are proud to be a valuable business member of the Somerset and Pulaski County communities and believe that the commencement of operations at the refinery will not only benefit the local community through the creation of jobs and tax revenues but will have a positive impact to the region and the oil and gas industry”. Somerset Energy Refining has already retained some of the best consultants to evaluate the facility and make recommendations on its operations, commenced hiring workers and has implemented a capital project to improve the efficiency of the refinery. Jan Acrea of Somerset, Kentucky has been retained as Interim Chief Operations Officer to guide the refinery through the process of becoming operational that will enable the refinery to be a vital and profitable business in the Somerset community. Grunberg Realty is the owner and manager of commercial and residential properties in New York, Arizona and Connecticut. This is Grunberg’s first acquisition in Kentucky. Grunberg Realty is a fiscally conservative, family owned company with relatively low loan-to-value ratios, and strives to deliver value to tenants by offering the amenities, quality and services of modern office buildings at competitive rents. Grunberg is committed to continued growth through acquisition and asset development like the Somerset refinery and other quality properties.
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