WINNERS of the bid in the auction of St Croix refinery Limetree Bay, West Indies Petroleum (WIP), and Port Hamilton Refining and Transportation are expected to close on the sale on Friday, January 21.

The companies were the joint winning bidder with a US$62-million bid for the oil refinery in a December 2021 auction. As long as financing is in place, the refinery will pass to its new owners.

In the week past, St Croix energy attorney Gregg Galardi failed in his bid to stay the sale of St Croix’s refinery from Limetree Bay — approved by a Texas bankruptcy Judge David Jones — to West Indies Petroleum Ltd.

The request, filed on January 5, was heard one week later but Judge Jones found that St Croix Energy failed to justify the request for a stay, and denied the motion in an order.

Galardi had asked the court to stay the sale pending appeal, with attorneys for Limetree Bay and West Indies Petroleum opposing the motion.

It is St Croix Energy’s hope, if the sale falls through on Friday, is that as back-up bidder it will acquire “substantially all” the refinery’s assets for $57 million.

WIPs winning bid came after Judge Jones voided the outcome of a November 18 auction — which St Croix Energy won — and reopened the auction to allow for a new bid at Limetree’s request.

St Croix Energy had won the first auction with a bid of $20-million cash, plus fees. But, at Limetree’s request, Judge David Jones reopened the auction to allow a new bid from West Indies Petroleum, whose CEO had a medical emergency preventing earlier participation.

At the second auction on December 18, West Indies Petroleum and Port Hamilton Refining and Transportation were the joint winning bidder with a US$62-million bid.

St Croix Energy in its appeal said that the court should examine whether it should have reopened the auction, and whether the court “erred in entering the sale order approving a transaction that did not comply with the existing bid procedures order,” according to a statement of issues filed by Galardi.

Both St Croix Energy and West Indies Petroleum participated in the auction as “going-concern” bidders, but will have to secure approval from the US Environmental Protection Agency.

Limetree has perpetrated several violations of the Clean Air Act with incidents in which nearby homes were covered in oil particles. Limerete has laid off refinery employees and contractors and needs money to rehabilitate equipment.

On December 9, attorneys for the US Justice Department and Limetree Bay filed a joint motion to stay all deadlines in the civil complaint (EPA) until February 21, 2022.