Limetree Bay Refining files Chapter 11 plan, disclosure statement

By Sarah Lizee

Olympia, Wash., March 21 – Limetree Bay Refining, LLC filed a Chapter 11 plan of liquidation and related disclosure statement Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

The debtors sold substantially all their assets on Jan. 21. The plan provides for the distribution of the proceeds from the sale of those assets remaining after satisfaction of the debtor-in-possession obligations on the effective date of the plan.

The debtors retained certain litigation claims and funds in order to wind down their operations and make distributions to creditors with allowed claims.

The plan contemplates the creation of a liquidating trust on the effective date for the purpose of administering, monetizing and liquidating the liquidating trust assets, resolving all disputed claims and making all distributions.

Holders of other priority claims will receive payment in full in cash.

Holders of prepetition revolver secured claims will receive their pro rata share of all available sale proceeds, and class A1, B1, B2, B3, C1 and C2 liquidating trust units.

Holders of prepetition term secured debt claims will receive their pro rata share of class A2, B2, B3 and C2 liquidating trust assets.

Holders of other secured claims will receive the collateral securing their claims or cash equal to the amount of their claims.

Holders of general unsecured claims will receive their pro rata share of the class B3 and C2 liquidating trust units.

Holders of governmental fine and penalty claims will receive their pro rata share of the class B4 and C3 liquidating trust units.

Holders of prepetition holdco secured debt claims will receive their pro rata share of class B5 and C4 liquidating trust units.

Equity interests and intercompany claims will be canceled with no distribution.

Limetree Bay is based in St. Croix, U.S. Virgin Islands, and is capable of processing around 200,000 barrels of oil per day. The company filed bankruptcy on July 12, 2021 under Chapter 11 case number 21-32351.

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