Judge Approves Reopening of Limetree Bay Auction as Jamaica-Based Firm Offers $30 Million in Upfront Cash
Judge David Jones, the chief bankruptcy judge for the Southern District in Houston, Texas has ordered the auction for the Limetree Bay Refinery be reopened to allow West Indies Petroleum — which on Friday signaled its intention to be part of the bidding process with a offering of $30 million — to participate. Limetree Bay on Monday filed a motion for the auction to be reopened.
2021-12-07 12:35:32 - VI News Staff
Limetree Bay attorney Elizabeth Green explained to the judge that West Indies Petroleum, a Jamaica-based firm which specializes in bunker services and oil storage, was originally part of the auction, but its chief executive had fallen ill and needed emergency attention in the days before the auction was set to take place and that prevented the company from proceeding at the time.
West Indies Petroleum's $30 million cash upfront offering is superior to St. Croix Energy's $20 million in cash upfront.
St. Croix Energy attorney Gregg M. Galardi expressed disappointment in the filing to reopen the auction, noting that SCE had done everything by the books and Tuesday was supposed to be the final sale hearing. Notwithstanding West Indies Petroleum chief executive's illness, Mr. Galardi said St. Croix Energy won the auction on Nov. 18 but the competing bidder waited until the last minute to state its intention.
Also opposing the filing was Bay Ltd.'s attorney, who questioned whether West Indies Petroleum should be allowed in the proceedings as it's a firm based in a foreign country. The attorney also criticized St. Croix Energy and has stated that the auction was tilted in SCE's favor from the outset. Bay Ltd., which intends to dismantle the refinery and sell its useful parts, has joined with New York-based Sabin Metal Corporation. The companies' combined bid would be up to $39 million, though only a fraction is in upfront cash.
The other parties involved, including Arena Capital, the debtor-in-possession (DIP) lender along with Goldman Sachs, both with significant investment in the Limetree Bay Refinery, stand to benefit from the increased offering.