“The bankrupt refinery signed a forbearance agreement Monday with bankruptcy lender Arena Investors LP that sets a Tuesday deadline to cure the default,” WSJ reported. “Arena said it has the right to terminate its loan with Limetree if it is not paid by then, according to papers in the U.S. Bankruptcy Court in Houston.”
The St. Croix refinery, which filed for bankruptcy in July after announcing an indefinite shutdown due to repeated toxic emissions and oil sprays, is on short cash rations and a tight schedule to find a buyer and close on a sale before the end of the year.
The alleged default is the second that Arena has pushed back on. The first was when Limetree missed a deadline to produce a budget and operation exit plan. In that instance Arena called default and reduced its total finance offer – a move that incurred the ire of U.S. Bankruptcy Judge David Jones and was reversed.
Neither Limetree nor Arena responded to requests for comment prior to the WSJ article’s publication. The Wall Street Journal article can be read online.