Limetree gets further interim OK of DIP loan; bid procedures approved

By Sarah Lizee

Olympia, Wash., Aug. 12 – Limetree Bay Refining, LLC received further interim approval to access $10 million of its debtor-in-possession facility, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company had already received interim access to $5.5 million of the loan following the first interim order.

405 Sentinel LLC is the lender and administrative agent for the DIP financing.

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

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

A final hearing is scheduled for Aug. 31.

Bid procedures

Limetree also received court approval of the bid procedures for the sale of substantially all of its assets.

The company may choose one or more stalking horse bidders for the assets. The stalking horse agreement would include a breakup fee of up to 3%.

Under the bid procedures, the company has until Sept. 10 to choose a stalking horse, competing bids will be due by Sept. 17, an auction will be held on Sept. 22, and a sale hearing will be held on Oct. 14.

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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