Limetree Bay reports voting results for Chapter 11 plan

Chicago, May 6 – Limetree Bay Refining, LLC reported the voting results for its Chapter 11 plan of liquidation in a declaration with the U.S. Bankruptcy Court for the Southern District of Texas.

The debtors preserve and retain claims related to: insurance policies; contracts and leases; accounts receivable and accounts payable; claims, defenses, cross-claims and counter-claims related to litigation and possible litigation, avoidance actions, claims objections and reconciliation process; and, causes of action against any insider of any debtor.

Previously reported, the plan ensures the feasibility of the proposed liquidation by providing up to $1.25 million in initial funding and carve-outs for administrative expenses of the liquidating trust, which amounts shall be funded by the cash collateral of the company’s revolving facility lenders.

Holders of other priority claims will receive payment in full in cash.

A voting class, holders of prepetition revolver secured claims will receive their pro rata share of all available sale proceeds, and class A1, B1, B2, B3, C1 and C2 liquidating trust units. All two votes of $50,320,833.33 received to accept the plan.

A voting class, holders of prepetition term secured debt claims will receive their pro rata share of class A2, B2, B3 and C2 liquidating trust assets. All 13 votes of $768,956,393,01 accepted the plan.

Holders of other secured claims will receive the collateral securing their claims or cash equal to the amount of their claims.

A voting class, holders of general unsecured claims will receive their pro rata share of the class B3 and C2 liquidating trust units. Of the voting class, 95 votes representing $23,924,772.18, or 88.89% of the votes and 72.36% of the amount, accepted the plan and 12 claims representing $9,139,558.28, or 11.21% of the votes and 27.64% of the amount, reject the plan.

A voting class, holders of governmental fine and penalty claims will receive their pro rata share of the class B4 and C3 liquidating trust units. No votes were tallied.

A voting class, holders of prepetition holdco secured debt claims will receive their pro rata share of class B5 and C4 liquidating trust units. All 13 votes accepted the plan, representing $995,956,403.93.

Equity interests and intercompany claims will be canceled with no distribution.

The liquidating trust agreement does allow for the possibility of raising more funds for the liquidating trust.

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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