Bidders for the bankrupt Limetree Bay oil refinery in the U.S. Virgin Islands are challenging the $33 million leading offer for the facility, saying their competing proposal to dismantle it is better for the local population, WSJ Pro Bankruptcy reported. Texas-based industrial manufacturer Bay Ltd. objected Wednesday to the refining complex’s proposed sale to St. Croix Energy LLLP, which wants to restart production there. The refinery on the island of St. Croix operated for a few months this year, after nearly a decade offline and a $4.1 billion refurbishment, until the Environmental Protection Agency suspended its permits in May due to pollution incidents. Bay and Sabin Metal Corp., the backup bidders that came in second at a bankruptcy auction, said their rival liquidation offer of $39 million would deliver more value for creditors, help fix longstanding pollution issues on St. Croix and create jobs for at least three years during the planned decommissioning. Limetree selected the St. Croix Energy offer as the leading bid. No sale can take place without approval from Judge David Jones of the U.S. Bankruptcy Court in Houston, who is overseeing the refinery’s chapter 11 case.
