Shuttered Refinery Addresses Debt, Investors Brace For Losses

ST. CROIX, USVI — Since Limetree Bay refinery announced that it is shutting down indefinitely, the refinery's creditors have been preparing to lose big on their investment.

Limetree CEO Jeff Rinker made the announcement on Monday, blaming severe financial constraints. He indicated that the company does not have enough cash on hand to restart the St. Croix-based refinery after it was temporarily shut down by the Environmental Protection Agency.

According to the Wall Street Journal, the owners are now in talks with creditors to address the refinery's outstanding debt.

The refinery is privately owned by EIG Global Energy Partners, a private-equity investor. EIG took over after the refinery went through bankruptcy in 2015. EIG hoped to make the refinery, which can process over 200,000 barrels of crude oil per day, a success by supplying the maritime sector as well as the Caribbean, Central and South America, and the US East Coast fuel markets.

EIG resumed operations at the refinery, under the management of Limetree Bay Ventures, LLC, in February but had multiple operations incidents, the latest resulting in oil droplets falling on nearby residential neighborhoods.

While creditors will eventually feel the repercussions of the closure, local companies that contract with the refinery already laying off employees.

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