Limetree Bay refinery files for bankruptcy

Limetree Bay refinery files for bankruptcy


Limetree Bay Refining LLC filed for Chapter 11 bankruptcy in Houston after the US Environmental Protection Agency closed its Caribbean oil refinery.

The refinery sought bankruptcy “due to severe regulatory and financial constraints” that forced it to suspend its refinery operations indefinitely, and has lined up to $25 million of so-called debtor-in-possession financing that will help it maintain the refinery through the Chapter 11 process, according to the statement.

The St Croix US Virgin Islands-based company issued a statement that it plans to use the court protection process to negotiate with creditors and equity holders and weigh options including asset sales.

In May, the refinery was forced to halt operations following emissions incidents that included contamination of drinking water.

Limetree’s parent company, Limetree Bay Ventures LLC refinery, now owned by EIG Global Energy Partners, will continue to operate the firm’s related oil storage terminal business. That unit is working with financial and legal advisers to navigate financial strains associated with the shuttered refinery.

On June 21, the company said it was suspending plans to restart the refinery and cutting more than 270 workers after efforts to raise capital foundered.

It’s the refinery’s second trip through bankruptcy court.

The bankruptcy comes at a time when the industry is struggling with shrinking profitability, excess production capacity and rising competition from mega-refineries in Asia amid a push by the Biden Administration to move the US away from fossil fuels.

For more information visit www.limetreebayenergy.com

19th July 2021