After extensive efforts to market St. Croix’s bankrupt Limetree Bay Refinery, St. Croix Energy has emerged as the stalking horse bidder – the only qualified bidder at present, according to documents filed Sunday in the U.S. Bankruptcy Court of the Southern District of Texas.
Limetree’s three-month marketing campaign reached out to 183 potential buyers, 35 of whom conducted due diligence. With several letters of interest received and other qualified bids still expected, an asset purchase agreement was negotiated for $20 million, making St. Croix Energy the stalking horse.
Previously, St. Croix Energy Communications Director Ashley Scotland shared that the group intends to restart the refinery as a “going concern,” that is, to refine and produce fossil fuel products. Compared with its opening bid of $11.5 million in October, the new bid represents “a significant increase in the amount being offered,” the court document said.
In exchange, St. Croix Energy has demanded $1 million in expenses be reimbursed at the closing of the sale, whether or not it emerges as the ultimate buyer. While stalking horse bidders ordinarily receive such protections, the amount is over and above the established percentage. Limetree has filed a motion seeking the court’s approval.
Also on Sunday Limetree filed motions to extend the bidding and auction in order to secure other qualified bids. The proposed new dates are:
Nov. 16: Deadline for qualified bidders to make good faith cash deposits.
Nov. 18: Auction date, if necessary.
Deadline to file designation of winning bidder: Nov. 22.