Coffeyville Resources to expand

? A Coffeyville refinery and fertilizer plant that played a role in the bankruptcy of Farmland Industries has announced plans for a $92 million expansion.

The current owner of the complex, Coffeyville Resources LLC, said Tuesday the expansion would increase the refinery’s crude oil output by 15 percent, to more than 115,000 barrels a day.

The expansion also will increase ammonia and urea ammonium nitrate production at the fertilizer facility from 650,000 tons to more than 1 million tons per year, the company said.

Farmland Industries spent more than $300 million to build the fertilizer plant next to the refinery in 1997. But weak fertilizer sales caused Farmland to close its nitrogen fertilizer plant in Lawrence and file for Chapter 11 bankruptcy in 2002; the company then wrote off most of its investments in the Coffeyville plant.

The refinery and fertilizer plant were sold in March 2004 by Farmland’s bankruptcy estate to Pegasus Capital Advisors for $23 million plus $85 million for inventory and $174 million in assumed liabilities.

Pegasus sold the complex last June to a partnership including an investment unit of Goldman Sachs Group Inc. and the private investment firm of Kelso & Co. Although the price wasn’t disclosed, Moody’s Investors Service estimated the value of the deal at more than $720 million.

For the 12 months ending last March, the complex earned $123 million before interest, taxes, depreciation and amortization.