Bazan Group (Oil Refineries) announced last week to investors on the Tel Aviv Stock Exchange that, as reported, the Haifa Municipality extended the validity of the temporary business operating permits for the group's companies by 60 days, subject to a number of conditions. The report revealed that yesterday the group's companies filed a petition against the municipality, demanding that it be ordered to renew the permits, which were set to expire this coming Saturday, October 31. Following the submission of the petition, the municipality announced the extension of the permits and the holding of a hearing in about 30 days.
The petition was filed following the summoning of the group's companies to a hearing at the Haifa Municipality, which Bazan reported last week, and after the municipality postponed the hearing date by several days without extending the validity of the business licenses. The group's companies asked the court to order the municipality to exercise its authority and renew the temporary permits, and at the same time submitted an urgent request for an interim order and an interlocutory injunction to ensure their continued validity until a decision is made on the petition.
According to the report, after the petition was filed yesterday, the municipality notified the group's companies of the extension of the permits for 60 days, subject to conditions, and that the hearing would take place in about a month. Bazan stated that it updated the court on the development and is examining the implications of the municipality's notice on the continuation of the legal proceedings.
Haifa municipality extends Bazan’s temporary operating permits
At the same time, Bazan reported another development in the benzene emissions case and the works at the Gadiv facilities. According to the company, an order was received pursuant to Section 45 of the Clean Air Law, establishing a framework for reducing or ceasing renovation works, in accordance with stricter environmental benzene values set in the order. This follows the suspension of work related to periodic maintenance at the aromatics facilities in Gadiv, which the company reported on October 12.
Bazan stated that it is continuing periodic maintenance work at the fuel unit facilities, and is operating in full coordination with the Environmental Protection Ministry to carry out the work at the Gadiv facilities. Despite the delay, the company emphasizes that its estimates regarding the impact of periodic maintenance on its financial results remain without material change.
However, the company clarifies to investors that its estimates regarding the duration of the work, its cost, and its financial impact are not certain and depend, among other things, on the approval of the Environmental Protection Ministry, additional regulatory guidelines, and contractor availability.