Limetree Bay’s liquidation plan objected to by class action plaintiffs

Chicago, May 5 – Limetree Bay Refining, LLC’s debtors’ plan of liquidation has been objected to by class action plaintiffs, according to a filing with the U.S. Bankruptcy Court for the Southern District of Texas.

The plaintiffs suffered both property damage and personal injuries from contamination incidents which occurred when Limetree Bay attempted to restart the refinery in St. Croix, U.S. Virgin Islands.

The objection states that there is no assurance that the bad faith insurance claims would be preserved by the liquidating trustee. Honoring those claims would currently be discretionary.

Additionally, the class action plaintiffs may have valuable claims against non-debtor defendants, and the group would like to see these claims specifically preserved in the plan.

The class action plaintiffs also want to broaden the exceptions to the release and injunction provisions of the plan to include all insurance claimants.

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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