Bankruptcy choose approves $62 million Limetree Bay sale to Jamaican firm

Dec 21 (Reuters) – A U.S. individual bankruptcy judge on Tuesday authorised the $62 million sale of Limetree Bay refinery to a Jamaican oil storage firm that intends to restart the refinery.

Private equity investors had poured $4.1 billion into reviving the getting old U.S. Virgin Islands facility, which was shut down by U.S. environmental regulators immediately after a botched restart earlier this 12 months. go through additional

West Indies Petroleum, along with Port Hamilton Refining and Transportation, was named the successful bidder on Saturday by Limetree following a next auction was executed over the weekend.

Register now for Free of charge unrestricted access to Reuters.com

If the firm does not complete the sale in January, the refinery can be acquired by backup bidder St. Croix Vitality LLLP, who lifted their bid from $20 million to $57 millionlast weekend.

At the refiner’s request, Decide David Jones reopened the auction in early December due to the fact the chief executive officer of West Indies Petroleum experienced a health-related unexpected emergency prior to the first auction. St. Croix Electricity objected to the second auction getting held.

“This was the 1st circumstance I could obtain that I ever reopened an auction for any purpose, and my conclusion now was that it was just the proper decision,” Jones reported on Tuesday.

“Challenges which could possibly have been a little bit murky are now in the general public for all to see,” he additional.

The two West Indies Petroleum and St. Croix Electrical power want to restart the refinery, which is now getting investigated by the U.S. Section of Justice immediately after releases of hydrogen sulfide and sulfur dioxide through a restart in early 2021 sickened St. Croix residents.

The Environmental Security Agency submitted a minimal objection on Sunday in buy to build “sale get language” with West Indies Petroleum developing environmental liability in the refinery’s consent decree.

The United States also sued Limetree Bay in July seeking injunctive relief below the Thoroughly clean Air Act that consists of demanding the refinery to “do away with any imminent and significant endangerment to human well being, welfare, and the setting prior to restart of refinery functions.”

Sign up now for Cost-free unrestricted access to Reuters.com

Reporting by Laura Sanicola in New York
Modifying by Matthew Lewis and Sonya Hepinstall

Our Criteria: The Thomson Reuters Trust Ideas.