Limetree Bay submits liquidating trust plan supplement

Chicago, April 29 – Limetree Bay Refining, LLC submitted a liquidating trust agreement as a plan supplement on Friday, in a filing with the U.S. Bankruptcy Court for the Southern District of Texas.

David M. Dunn of Province, LLC has been appointed as trustee.

The debtors preserve and retain claims related to: insurance policies; contracts and leases; accounts receivable and accounts payable; claims, defenses, cross-claims and counter-claims related to litigation and possible litigation, avoidance actions, claims objections and reconciliation process; and, causes of action against any insider of any debtor.

From the company’s Chapter 7 plan and earlier reported, the Chapter 7 plan ensures the feasibility of the proposed liquidation by providing up to $1.25 million in initial funding and carve-outs for administrative expenses of the liquidating trust, which amounts shall be funded by the cash collateral of the company’s revolving facility lenders.

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.

The liquidating trust agreement does allow for the possibility of raising more funds for the liquidating trust.

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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