Limetree: Protections enhanced for stalking horse St. Croix Energy

By Sarah Lizee

Olympia, Wash., Nov. 23 – Limetree Bay Refining, LLC received court approval to amend the bid procedures for its assets in order to enhance bid protections for stalking horse St. Croix Energy, LLLP, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of Texas.

In its motion seeking the amendments, the company said that it had received a firm bid with an executed asset purchase agreement from St. Croix Energy for $20 million for the assets on a going-concern basis. But Limetree said that it had negotiated a significant increase in the amount being offered by the stalking horse. In exchange, St. Croix Energy required an increase in the total allowable amount of bid protections to 5% from 3%, which results in reimbursement of expenses of $1 million payable on the closing of a sale.

The stalking horse will receive payment of the bid protections whether or not it is the successful bidder and will be paid from the proceeds of the purchase price.

A sale hearing is set for Dec. 3, the deadline for the winning bidder to close the sale is Dec. 10, and the deadline for any backup bidder to close the sale is Dec. 13.

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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