Limetree Bay Refining LLC and several affiliates filed voluntary petitions under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas.
Petroleum refining and processing operations at the company's St. Croix, US Virgin Islands refinery were suspended May 12, 2021, following an order from the US Environmental Protection Agency (EPA) to pause all operations as some were alleged to be of imminent risk to public health. Subsequent plans by Limetree Bay to restart the refinery were indefinitely suspended due to severe regulatory and financial constraints, the company said.
Limetree Bay said it intends to use the process to engage in discussions with its lenders, creditors, equity owners, and others to evaluate options to maximize the value of the estate and recoveries for stakeholders, including exploring a potential sale of its assets.
Commitments of up to $25 million in new debtor-in-possession financing, upon court approval, are expected to provide sufficient liquidity to meet ongoing maintenance obligations during the bankruptcy process, the company said.
Oil storage terminal operations are expected to continue.
Limetree Bay completed its long-planned restart of the previously-idled refinery in February (OGJ Online, Feb. 1, 2021). The refinery is capable of processing around 200,000 b/d.
