The Limetree Bay refinery in the U.S. Virgin Islands is behind on more than $63,000 in interest on its bankruptcy loan, according to court papers filed by the crude facility as it searches for a buyer, WSJ Pro Bankruptcy reported. The bankrupt refinery signed a forbearance agreement Monday with bankruptcy lender Arena Investors LP that sets a Tuesday deadline to cure the default. Arena said it has the right to terminate its loan with Limetree if it is not paid by then, according to papers in the U.S. Bankruptcy Court in Houston. Limetree Bay Refining LLC ended the month of August with a cash balance of $11.7 million, court filings show. The default and forbearance marks another dispute between Arena and Limetree over the terms of an up-to-$19.5 million bankruptcy loan and the company’s plan to exit from chapter 11. In August, Arena called a default under the loan after it said the company failed to present a budget and operational winddown plan on time. Arena also reduced the total amount of financing it would furnish to Limetree Bay after the company wrote down the value of certain receivables it was due to be paid.
