Limetree Bay Refining details proposed $25 million DIP financing

By Sarah Lizee

Olympia, Wash., July 13 – Limetree Bay Refining, LLC detailed the terms of its proposed $25 million debtor-in-possession financing in a motion filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

405 Sentinel LLC is the lender and administrative agent.

The company is seeking interim access to $5.5 million of the facility.

The DIP facility will bear interest at 3% in cash and 9% in kind.

While the debtors have obtained a commitment for the $25 million in financing, the conditions for the financing, particularly the DIP lenders’ request for priming liens for amounts in excess of $5.5 million, have not been finalized and are continuing to be discussed with the debtors, the DIP lenders, the pre-petition lenders and their respective advisers.

Aside from the proposed DIP facility, the debtors do not have access to funds for operational expenses through existing credit facilities as those facilities are either fully drawn or the debtors are unable to satisfy some prerequisites to access the funds, the company said.

The company is also seeking court approval to use the cash collateral of 405 Sentinel and its pre-petition secured parties.

Limetree Bay estimates assets between $1 billion to $10 billion and liabilities between $500 million and $1 billion.

Its largest unsecured creditors are Universal Plant Services (VI), LLC, based in Deer Park, Tex., with a $24.42 million trade debt claim, Excel Construction & Maintenance VI, based in Baton Rouge, La., with a $22.33 million trade claim, Elite Turnaround Specialists, based in LaPorte, Tex., with a $15.33 million trade debt claim, BP Oil Supply, based in Houston, with a $13.37 million trade debt claim, Inserv Field Services USVI LLC, based in Tulsa, Okla., with a $12.63 million trade debt claim, National Industrial Services, LLC, based in St. Croix, U.S. Virgin Islands, with a $12.05 million trade debt claim, and Vivot Equipment Corp., based in Christiansted, U.S. Virgin Islands, with a $9.69 million trade debt claim.

Limetree Bay is based in St. Croix, U.S. Virgin Islands and is capable of processing around 200,000 barrels per day. The company filed bankruptcy on July 12 under Chapter 11 case number 21-32351.

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