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Sun Jul 11, 2021, 10:12 PM

Limetree Bay Could File For Bankruptcy as Early as This Weekend, Bloomberg Says; Company to Seek

Limetree Bay Could File For Bankruptcy as Early as This Weekend, Bloomberg Says; Company to Seek Financing During Chapter 11


ST. THOMAS Limetree Bay Refining could file for bankruptcy as early as this weekend, Bloomberg has reported, with the publication citing people with knowledge of the matter, who further stated, "the refinery on St. Croix has been seeking so-called debtor-in-possession financing that will help fund a restructuring in bankruptcy court."

Bloomberg said its sources were asked not to be identified because the discussions are private.

Debtor-in-possession financing or DIP financing, is a special form of financing provided for companies in financial distress, typically during restructuring under corporate bankruptcy law.

Limetree Bay on June 21 announced it was suspending its plans to restart the refinery indefinitely due to severe financial constraints. The closure has resulted in hundreds of jobs being lost on St. Croix, and the aftermath of the layoffs is already being felt by businesses. On Friday, the owner of restaurant on the Hess Road said sales have dropped more than 50 percent.

On Sept. 19, Limetree will let go 291 of its employees, making for a devastating reality as the additional layoffs will be upon hundreds already made redundant by Limetree contractors, including hundreds the weekend before Limetree announced its closure, and another 100 from Pinnacle soon after the announcement.

Read more: https://viconsortium.com/vi-business/virgin-islands-limetree-bay-could-file-for-bankruptcy-as-early-as-this-weekend-bloomberg-says-company-to-seek-restructuring-during-chapter-11

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