Limetree Bay refinery’s light bankruptcy financing raises concerns

Limetree Bay Oil Refinery facilities are seen in St Croix, U.S. Virgin Islands, June 28, 2017. REUTERS / Alvin Baez / File Photo

July 13 (Reuters) – A U.S. bankruptcy judge on Tuesday raised concerns that the Limetree Bay refinery in the Virgin Islands may not have enough money to get through the first days of its restructuring in the United States. title of chapter 11.

“I am very worried that this is not enough money,” US Chief Bankruptcy Judge David R. Jones said in a hearing Tuesday.

Jones, who is based in Houston and a veteran of several refinery restructurings in the Southern District of Texas, added that his cash flow problems are among the worst he has ever had.

The refinery is expected to receive up to $ 25 million in bridge financing as it attempts to restructure nearly $ 2 billion in debt. Jones approved the funding.

Limetree filed for Chapter 11 protection on Monday after spending more than $ 4 billion trying to restart the St. Croix refinery.

But Limetree’s lawyers say the refinery needs at least $ 150 million in funding to maintain operational capabilities, complete ongoing repairs and upgrades, fund necessary repairs identified by the US Protection Agency. environment and establish a reserve for potential expenses.

Reporting by Tim McLaughlin Editing by Chris Reese and Marguerita Choy

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