Rexene Employee Association
Welcome to Rexene Employee Association, located in Odessa, Texas!
February 4, 2012 - Message from the President
The REA began the effort to purchase the Rexene plant from FHR in late 2008. At the time FHR had announced its decision to shutter the plant and begin the tricky and expensive process of "green fielding" the location. FHR sought a Municipal Settings Designation (MSD) to relieve it of certain expensive obligations in the green fielding process. Initially, FHR publically ridiculed the REA's plan for restarting the plant as economically unfeasible. The REA plan was developed with the specialized knowledge of the REA and Rexene's former chief and substantial outside capital. After many exchanges of views, the REA and the New Rexene management team were able to convince FHR that the plan was feasible and provided an outstanding opportunity for a long-term asset for Odessa. The REA supported FHR's application for the MSD based on the FHR's commitment to sell the plant to the REA as the long term stewards of this site. We cannot help but wonder at this stage whether the REA's support was misplaced. A full year has passed since FHR committed to sell the facility. We understand that FHR now intends to reconfigure a portion of the plant site to a crude oil transportation operation. This is, at its best, not the long term solution the REA and other Odessans were seeking for the use of the site. FHR has told the REA that it is still considering the sale of the plant and adequate capital for the purchase and initial start up expenses is available, but there is no apparent timetable for FHR's decision. Every day that passes makes the job of restarting the plant more difficult.
Recognition of our continued desire to complete a deal by FHR will be followed by 30-45 days of intense due diligence and a rapid closure. We stand ready to do a deal and are told that FHR has made no decision on disposition of the site.
Best regards,
Michael D.DeShazo
October 15, 2011 - Message from the President
Scuttlebutt has FHR planning to modify the tubes on the high pressure plant to increase output, eliminate the EVA’s (not a bad idea in the tube plant and it simplifies olefins by eliminating the need to send the recycle back to olefin plant). By focusing their product on the commodity markets and modifying the plants to manufacture the maximum amount of polymer at a minimum cost FHR will be able to profit from the stranded ethane in the basin. This condition remains as long as the ethane price remains low, which has been fleeting in the past. Of course commodity PE prices will also have to remain up, which in turn will depend on the competition.
Rexene’s plan on the other hand focuses on the specialty markets. Our plan, In contrast to that of FHR’s, provides for better long term prospects for stable profitability in niche markets that are more suitable for the plant facilities. Opportunities in niche markets will allow Rexene to add capacity over time.
Our business plan will require Rexene to play an active role in the industrial development of the basin. We ask Koch to see us as reliable and safe stewards of the complex site. This is our membership’s home and the environmental health of the site is very important to us all.
Best regards,
Michael D.DeShazo
June 13, 2011 – Message from the President
The REA remains committed to the rebuilding of the Rexene Corp. under the leadership of William J. Gilliam. "We eagerly await, with hopeful expectations, FHR's imminent decision."
Best regards,
Michael DeShazo
Rexene Employee Association
June 8, 2011 – Message from the President
The REA has commenced a lawsuit against Wexford and certain related parties. A copy of the pleadings is now on display on our website, along with copies of all future filings by us and answers or other responses from the various defendants.
The REA is represented by JC Nickens and Ron Franklin of McGuire Woods inHoustonand by Mike Atkins and Tryon Lewis from Atkins, Hollmann, Jones, Peacock, Lewis & Lyon inOdessa inOdessa.
As previously reported to you, the REA and Bill Gilliam were able to obtain replacement investors following Wexford’s improper actions.
Unfortunately, Wexford’s substantial delays and other improper actions have caused FHR to re-evaluate and re-consider selling theOdessaassets to the REA sponsored investor group.
We have been advised that FHR is presently considering a wide variety of alternatives, including reconsideration of FHR’s refurbishing and re-starting theOdessaassets.
In the next several weeks the REA intends to reach out to members and other former employees in order to survey the feelings and opinions of REA members and former employees as to the various alternatives that might be pursued by FHR, including (hopefully) a sale of the assets to the REA sponsored investor group.
Best regards,
Michael D.DeShazo
May 10, 2011 – Message from the President
I apologize for the delay in updating you. The current status of the Rexene deal is we are on hold while FHR reviews their options.
While we have had issues with two of our sponsors, our current sponsors are excellent both in size, expertise, and acceptance of our management team and business plan.
We also believe we are the superior bidder for FHR's Odessa assets both financially and as long term stewards of the assets from a risk point of view.
So... Stay tuned we have every reason to hope for good news soon.
Best Regards
Michael DeShazo
Chairman REA
March 4, 2011 - Message from the President
As many of you know, the REA and Bill Gilliam began working with Wexford Capital in January 2010. Following FHR's March 2010 decision to consider selling the Odessa assets to an investor group being organized by Bill Gilliam, Wexford asked Bill Gilliam and the REA to begin providing them with a substantial amount of due diligence information.
For example, in the spring of 2010, the REA retained environmental counsel in order to provide Wexford with assurances concerning the site's environmental liabilities. At the same time, Wexford suggested that the "investor group" retain CMAI in order to provide Wexford with polymers marketing data. Once CMAI was retained, Wexford refused to accept any responsibility for paying CMAI's invoices. In the summer of 2010, Wexford suggested that the REA pay a $25,000.00 option fee to acquire New Market Tax Credits. The REA paid an option fee, and the option was lost when Wexford engaged in foot dragging and unexplained delays.
As a result on this conduct, in September 2010 the REA board voted to impose severe restrictions on the form and nature of any Wexford investment that would have the benefit of the support of the REA. The REA board voted to inform Bill Gilliam of this resolution at such time as Wexford actually committed to moving forward.
In December 2010, Wexford informed Bill Gilliam that Wexford was interested in entering into exclusive negotiations with FHR. Bill Gilliam was informed that Wexford had numerous, non-negotiable conditions to their interest:
• Bill Gilliam would have to immediately agree to working exclusively for the Wexford proposal, for no compensation as well as having to pay all of his own costs and expenses.
• Wexford reserved the right to make offer or no offer to FHR, and Bill Gilliam had no right to have any discussions with FHR other than with Wexford's prior approval.
• Wexford provided strong indications that they did not have any intention of refurbishing and re-starting most of the Odessa site assets. Wexford has a large oil and gas business and it became increasingly clear that Wexford's primary interests were similar to the interests of local oil and gas players that had previously approached FHR with plans to re-start the storage wells and the fractionator.
• Wexford informed Bill Gilliam that he would be a candidate to be the Chairman of the new Rexene. However, Wexford reserved the right to hire whomever they wished as well as the right
to fire Bill Gilliam or anyone else for any reason or for no reason.
• Wexford informed Bill Gilliam that either Bill Gilliam or the REA would have to pay the CMAI and other outstanding due diligence expenses as well as informing us that Wexford would not
reimburse any of the REA' out of pocket costs and expenses.
• Wexford has informed Bill Gilliam that they refused to fund any ESOP. Although bill Gilliam committed to donating a portion of whatever stock Bill received from Wexford to an ESOP, your Board thinks that this level of disregard for the value of REA members is further proof of Wexford's lack of commitment to our business and our community.
• Finally, despite the fact that Bill Gilliam, with the full support and assistance of the REA, provided Wexford with highly proprietary and confidential business plans, projections and strategies; Wexford claimed that they somehow had the "right" take and to use the work product of others.
• Your board of directors may not be sophisticated Wall Street types, but in West Texas we believe that the penalty for this type of conduct when done with someone's horse was hanging.
We have just learned that FHR has apparently granted Wexford some short period of exclusivity in which to sign an agreement. We understand that Wexford's proposal is highly conditional, and we believe that Wexford believes that it will take many, many months if not years to get anything at the complex back in operation.
We have a solid commitment from Vanadium Capital and their investment group. The Vanadium investor group has promised us an ESOP, as well as promising to repay the REA's due diligence expenses. The Vanadium investor group has total committed capital that is a lot bigger than Wexford's total capital, so our supporters have the financial capability of making sure that the complex is not only re-opened, but fully restored as it should be. The investor group is fully committed to resumption of manufacturing a quality line of specialty polymers as well as being committed to expanding our operations and businesses.
During the coming weeks your board of directors will be providing REA members with frequent updates as well as requests for help in making sure that Rexene does not once again succumb to a purchase by a group that might well make the "dirty dozen" look good by comparison.
Watch your email as we will provide you with more information and as always you may provide input through the website. We would also like your input on the ground water issue or MSD at the plant. We have been neutral on this issue as we assumed we would be stewards of the site.
Don't forget we are having our annual meeting the 22nd of March. Nominations are open for Chairman and two Board seats.
Best Regards
Michael DeShazo
January 20th, 2011 Message from President
The Rexene Employee Association begins a new year with plans for a successful outcome for our efforts. I would like to thank all those who attended the called REA meeting Wednesday January 17, 2011 at 7:00pm. I apologize that the attendees did not get the opportunity to question the investor group, however one of the investors did not wish publicity and the others then declined as well. Just the same your presents was important for the investor group. The REA is now working on the ORG charts and the investors are independently verifying start-up cost. Further information will be distributed via email.
Best Regards,
Michael DeShazo
December 15, 2010 Message from President
Grass Fire at the Plant
The fire missed most everything but the Air Liquide Cryogenic Plant and some rail cars on the north
side of the plant. Reports on the cars are minor. The fire jumped the road on the west side of the plant and engulfed the Air Liquide cryogenic building and traveled along the north boarder of
the plant.
Michael DeShazo
October 17, 2010 Message from the President
Things are happening and we are happy to report that progress is being made. Check your email as an update is coming.
Best regards,
Michael DeShazo
September 10, 2010 Message from the President
While much of the work done in respect to Rexene Plastics and Polymers acquisition of the Odessa assets is confidential, we can share what the REA is doing.
Rexene Employee Association has identified the pre start up personnel and phase one start up roster. We are also working on benefits and working with a contractor on payroll. We ask your patience as you can imagine there are many behind the scene issues that must be resolved before the acquisition can be completed. We will keep you posted when we can start employment interviews.
Thank You
Michael D. DeShazo
July 7, 2010 Employment
Notice
Rexene Employees Association is seeking resumes for future employment for the following positions:
General Laborers
Clerical Support
Industrial Hygienist
Please forward your resume by e-mail to rexene.emp@gmail.com or mail your resume to Rexene Employees Association, c/o TWC, 2626 JBS Parkway, Building D, Odessa, TX 79761.
May 11, 2010 Annual Meeting Minutes
Meeting was called to order by Larry Harmon
Meeting was declared a closed meeting and members of the press if any were asked to leave.
Invocation and Pledge of Allegiance lead by Jack Westerfeldt.
Motion was made by Mike DeShazo to accept current REA Officers and Board. REA members second the motion and all members agreed. Below is the elected 2010 board.
· Mike DeShazo – President - Present
· Jack Westerfeldt – Treasurer – Present
· Tim Repman – Vice-President – Present
· Sherry Cox - Secretary
· Board members – Larry Harmon, Jerry Carroll, Cheryl Sugar, Mark Johnson, Bo Jimenez, Pat Casas
Mike DeShazo introduced Jens Dalsgaard, Constellation Capital, who spoke about and introduced Bill Gilliam.
Mr. Gilliam gave updates on the progress and what potential employees can look forward to in the future. Mr. Gilliam granted Q&A’s to members.
Mike DeShazo introduced Ken Winslow who went over the Rexene ESOP Concept Plan. Mr. Winslow agreed to send ESOP Concept by e-mail.
Mr. Gilliam, who was once an employee of Rexene, signed on as a member of the REA as well as three honorary members, Jens Dalsgaard, Richard Pisano and Terri Roberts.
Details on progress will be communicated by email for eyes only. All progress information is confidential. So, if you are not registered with the REA you should do that.
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The goal of our nonprofit organization is to investigate the possibilities of purchasing the FHR Chemical and Polymers Plants in Odessa, Marysville, Longview and Peru.
Annual Meeting Tuesday May 11th 7:00pm Ector Theater Odessa
Election of REA Board members and Featured speakers: William Gilliam Chairman Rexene Plastics and Polymers, Jens Dalsgaard Chairman Constellation Capital Management and Kenneth Winslow President Benefit Southwest. Come and ask your questions and make certain of your membership.
Submit your resume to the REA for employment with the new Rexene
As a result of advice by the City Council, Rexene Plastics & Polymers plans to come to the table with 200 to 300 million dollars, detailed business plan, a credible work force and management capable of operating the plant safely and profitably.
If you wish to seek employment with the new Rexene submit your resume to the email address on the website or mail to the Rexene Employee Association 2626 JBS Parkway Bld D, Odessa, Tx 79761. Your resume will be held confidential as with any large company, handled by Human Resource professionals.
I know many have asked questions about the Feb 9th Council meeting. Please understand the decision rendered by the Council was extremely favorable to us and we are very appreciative of their decision and counsel of individuals on the Council. Be proud of your City Council.
Read Odessa American's article about Rexene and cast your vote for reopening Rexene !!!!
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