A Texas bankruptcy judge has denied a request by St. Croix Energy to stay the bankruptcy sale of St. Croix’s refinery from Limetree Bay to the Jamaican company West Indies Petroleum Ltd., the Virgin Islands Daily News reported. St. Croix Energy attorney Gregg Galardi filed an emergency motion to stay the sale order by Judge David Jones on Jan. 5. The request came after Judge Jones voided the outcome of a Nov. 18 auction — which St. Croix Energy won — and reopened the auction to allow for a new bid at Limetree’s request. St. Croix Energy won the first auction with a bid of $20 million cash, plus professional fees of the debtor through a transitional services agreement which would have had the debtors operate the refinery on behalf of SCE. But, at Limetree’s request, Judge David Jones reopened the auction to allow a new bid from West Indies Petroleum, whose chief executive officer had a medical emergency on the eve of the first auction. At the second auction on Dec. 18, West Indies Petroleum and Port Hamilton Refining and Transportation were the joint winning bidder with a $62 million bid. St. Croix Energy is appealing, arguing that there are several issues that require further examination, including whether the court should have reopened the auction, and whether the court “erred in entering the Sale Order approving a transaction that did not comply with the existing bid procedures order,” or the order reopening the auction, according to a statement of issues filed by Galardi on Thursday. Galardi asked the court to stay the sale pending appeal, and attorneys for Limetree Bay and West Indies Petroleum opposed the motion. Judge Jones found that St. Croix Energy has failed to justify the request for a stay, and denied the motion in an order filed Thursday.
