Limetree Bay’s selection of winning, backup bidders draws objection

By Sarah Lizee

Olympia, Wash., Dec. 2 – Limetree Bay Refining, LLC’s selection of winning and backup bidders for its assets drew an objection Wednesday from Bay, Ltd., which is one of two backup bidders named by the company, according to a filing with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company named stalking horse bidder St. Croix Energy, LLLP the winning bidder for its assets. St. Croix Energy’s bid includes a $33 million purchase price, consisting of $20 million in cash, $14 million in assumed and avoided liabilities and expense reimbursement under the terms of a transition services agreement, minus a $1 million expense reimbursement.

The combined bids of Sabin Metal Corp. and Bay, Ltd. were named backup bid. Sabin’s bid includes a roughly $15.12 million consideration, and Bay’s bid includes a roughly $24.76 million consideration.

Bay said the designation should be reversed, with St. Croix as the backup bidder.

“A serious dispute exists on the much delayed, but recently announced selection of St. Croix as the winning bidder, which ignores the higher and better bids from Bay and Sabin,” Bay said in its objection.

“There is a fundamental change in circumstances arising due to Bay’s successful participation in the auction – which ironically Bay had to prepare to fight to even participate in, which casts further doubt on the sale process seeming to preordain a preference for St. Croix as the winner, regardless of the auction results.”

Bay said it believes the sale process was “tilted from the start” to benefit St. Croix, for unknown reasons.

Bay also noted that it and Sabin’s bids exclude several assets, which are left to the estate. Those assets appear to be included in the St. Croix bid.

A sale hearing is scheduled for Dec. 7.

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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