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Limetree Bay Refining unsecured creditors move to dismiss case
By Sarah Lizee
Olympia, Wash., March 23 – Limetree Bay Refining, LLC’s official committee of unsecured creditors filed a motion seeking dismissal of the company’s Chapter 11 bankruptcy case on Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.
As previously reported, the committee said it would seek the dismissal if the company filed a Chapter 11 plan. The company filed a plan and related disclosure statement on Friday.
“There is nothing of any benefit to be gained by prolonging the debtors’ stay in bankruptcy to pursue the plan the debtors just filed in close coordination with and likely at the direction of the prepetition secured parties,” the committee said in its motion.
“As noted by the structure of the plan, the debtors are now nothing more than a figurehead, having ceded control to the prepetition secured parties, who should now be considered lenders in possession.”
The group said confirming the plan will be expensive and time consuming, and will “advance the limited goal of eking out perhaps another fraction of a cent recovery” for Goldman Sachs and the other prepetition secured parties.
The committee said the main goal of the case, to sell the debtors’ refinery assets on a going concern basis, has been completed despite the “steep odds” at the outset of the case.
The group said it is now time to conclude the case by distributing the sale proceeds and dismiss the case.
Limetree Bay is based in St. Croix, U.S. Virgin Islands, and is capable of processing around 200,000 barrels of oil per day. The company filed bankruptcy on July 12, 2021 under Chapter 11 case number 21-32351.
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