74.7 F
Charlotte Amalie
Friday, March 29, 2024
HomeNewsLocal newsSt. Croix Energy Emerges As Limetree Stalking Horse Bidder

St. Croix Energy Emerges As Limetree Stalking Horse Bidder

On the south shore of St. Croix in the U.S. Virgin Islands, the defunct west end of Limetree Bay Refinery overlooks an aqua sea on Tuesday, May 25. (Source photo by Patricia Borns)
On the south shore of St. Croix in the U.S. Virgin Islands, the defunct west end of Limetree Bay Refinery overlooks an aqua sea on Tuesday, May 25. (Source photo by Patricia Borns)

After extensive efforts to market St. Croix’s bankrupt Limetree Bay Refinery, St. Croix Energy has emerged as the stalking horse bidder – the only qualified bidder at present, according to documents filed Sunday in the U.S. Bankruptcy Court of the Southern District of Texas.

Limetree’s three-month marketing campaign reached out to 183 potential buyers, 35 of whom conducted due diligence. With several letters of interest received and other qualified bids still expected, an asset purchase agreement was negotiated for $20 million, making St. Croix Energy the stalking horse.

Previously, St. Croix Energy Communications Director Ashley Scotland shared that the group intends to restart the refinery as a “going concern,” that is, to refine and produce fossil fuel products. Compared with its opening bid of $11.5 million in October, the new bid represents “a significant increase in the amount being offered,” the court document said.

In exchange, St. Croix Energy has demanded $1 million in expenses be reimbursed at the closing of the sale, whether or not it emerges as the ultimate buyer. While stalking horse bidders ordinarily receive such protections, the amount is over and above the established percentage. Limetree has filed a motion seeking the court’s approval.

Also on Sunday Limetree filed motions to extend the bidding and auction in order to secure other qualified bids. The proposed new dates are:

Nov. 16:  Deadline for qualified bidders to make good faith cash deposits.

Nov. 18: Auction date, if necessary.

Deadline to file designation of winning bidder: Nov. 22.

Print Friendly, PDF & Email
Keeping our community informed is our top priority.
If you have a news tip to share, please call or text us at 340-228-8784.

Support local + independent journalism in the U.S. Virgin Islands

Unlike many news organizations, we haven't put up a paywall – we want to keep our journalism as accessible as we can. Our independent journalism costs time, money and hard work to keep you informed, but we do it because we believe that it matters. We know that informed communities are empowered ones. If you appreciate our reporting and want to help make our future more secure, please consider donating.