Limetree Bay Refining LLC filed for chapter 11 bankruptcy in Houston on Monday after the U.S. Environmental Protection Agency closed its Caribbean oil refinery, Bloomberg News reported. The St. Croix, U.S. Virgin Islands-based company said in a statement that it plans to use the court protection process to negotiate with creditors and equity holders and weigh options including asset sales. The refinery sought bankruptcy “due to severe regulatory and financial constraints” that forced it to suspend its refinery operations indefinitely, and has lined up to $25 million of so-called debtor-in-possession financing that will help it maintain the refinery through the chapter 11 process, according to the statement. Limetree’s parent company will continue to operate the firm’s related oil storage terminal business. That unit is working with financial and legal advisers to navigate financial strains associated with the shuttered refinery, Bloomberg reported earlier Monday. The 200,000-barrel-a-day refinery in May was forced to halt operations following emissions incidents that included contamination of drinking water. On June 21, the company said it was suspending plans to restart the refinery and cutting more than 270 workers after efforts to raise capital foundered.
