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Dec 21 (Reuters) – A U.S. personal bankruptcy choose on Tuesday authorised the $62 million sale of Limetree Bay refinery to a Jamaican oil storage firm that intends to restart the refinery.
Non-public equity traders had poured $4.1 billion into reviving the ageing U.S. Virgin Islands facility, which was shut down by U.S. environmental regulators following a botched restart before this yr. examine far more
West Indies Petroleum, along with Port Hamilton Refining and Transportation, was named the winning bidder on Saturday by Limetree right after a second auction was done about the weekend.
If the enterprise does not finish the sale in January, the refinery can be obtained by backup bidder St. Croix Energy LLLP, who elevated their bid from $20 million to $57 millionlast weekend.
At the refiner’s request, Choose David Jones reopened the auction in early December simply because the main govt officer of West Indies Petroleum had a medical emergency prior to the initial auction. St. Croix Electrical power objected to the second auction staying held.
“This was the initially circumstance I could obtain that I at any time reopened an auction for any motive, and my conclusion currently was that it was precisely the suitable decision,” Jones claimed on Tuesday.
“Challenges which may well have been a little bit murky are now in the general public for all to see,” he extra.
Both equally West Indies Petroleum and St. Croix Strength want to restart the refinery, which is at this time being investigated by the U.S. Section of Justice just after releases of hydrogen sulfide and sulfur dioxide through a restart in early 2021 sickened St. Croix residents.
The Environmental Safety Company submitted a minimal objection on Sunday in buy to create “sale get language” with West Indies Petroleum setting up environmental liability in the refinery’s consent decree.
The United States also sued Limetree Bay in July trying to get injunctive reduction underneath the Clean Air Act that involves necessitating the refinery to “remove any imminent and considerable endangerment to human wellbeing, welfare, and the surroundings prior to restart of refinery functions.”
Reporting by Laura Sanicola in New York
Editing by Matthew Lewis and Sonya Hepinstall
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