An idled oil refinery in the U.S. Virgin Islands received a bankruptcy judge’s approval to begin drawing an emergency loan as it embarks on its second trip through bankruptcy in the last six years, WSJ Pro Bankruptcy reported. Limetree Bay Refining LLC on St. Croix can tap the first $5.5 million of a $25 million bankruptcy loan to cover payroll for 271 employees and fund payments to vendors, Judge David Jones said at hearing yesterday in the U.S. Bankruptcy Court in Houston. The bankruptcy loan is being supplied by Arena Investors LP, an outside lender that wasn’t involved with Limetree Bay before it mothballed operations last month and filed for bankruptcy on Monday. The refinery, as well as a nearby oil terminal and storage facility, are both controlled by private-equity firm EIG Global Energy Partners. The refinery had been in operation only a few months after sitting dormant for nearly a decade. Federal authorities ordered it shut in May over pollution releases, including a flaring incident that rained down droplets on nearby homes, sickening residents and damaging property. Last month, the company decided to mothball the refinery, citing financial constraints.
