A possible buyer has emerged to purchase the bankrupt Limetree Bay oil refinery in the U.S. Virgin Islands for $20 million, a fraction of the roughly $4.1 billion that investors have spent trying to make the project viable, WSJ Pro Bankruptcy reported. St. Croix Energy LLLP has been named as the only qualified bidder eligible to purchase the facility out of the bankruptcy, with the goal of reopening operations after the company exits chapter 11, Limetree’s lawyers said in court filings on Sunday. A hearing to consider designating St. Croix Energy as the lead bidder, or stalking horse, is scheduled for Monday afternoon. Any sale transaction requires approval from the U.S. Bankruptcy Court in Houston, where Limetree Bay sought protection in July. The Environmental Protection Agency suspended Limetree’s operating permits in May after a number of pollution incidents, including a release of noxious gases and oil vapors across towns on the island of St. Croix. Bankruptcy followed when investors pulled support. The refinery had been operating only a few months after nearly a decade offline. The $20 million offer pales in comparison to the capital dedicated to the facility’s restart under the auspices of ArcLight Capital Partners LLC and EIG Global Energy Partners, two of Limetree’s biggest backers since 2016. While St. Croix Energy had initially offered $11.5 million to buy Limetree Bay in late October, the bidder increased its offer to $20 million last week, in exchange for expense reimbursement of up to $1 million out of the purchase price, court filings show.
