A shut Oil Refinery, in the U.S. Virgin Islands, filed for Bankruptcy, Monday evening, the same week the Justice Department (DOJ) announced Civil Action against the Facility.
The Limetree Bay Refinery, which had been Inactive for several years, resumed Operations, in February 2021, due to several Steps taken by the Outgoing Trump Administration, to Ease the Path to Reopening.
Later, the Environmental Protection Agency (EPA) ordered it Shut-Down, citing Reports of Major Environmental and Human Risks, to the Local Residential Areas.
In June 2021, the Facility announced it would stay Closed Indefinitely, citing Lack of Capital.
"We are extremely grateful to our investors, employees and business partners for standing by us through the restart process and these uncertain times," Limetree Bay CEO, Jeff Rinker, said in a Statement, Monday.
"Severe financial and regulatory constraints have left us no choice but to pursue this path, after careful consideration of all alternatives. The Chapter 11 process provides Limetree with the clearest path to maximize the value of our estate for our stakeholders while safely preparing the refinery for an extended shutdown."
Earlier Monday, the DOJ announced a Federal Complaint against the Refinery, saying it continued to pose a Threat to the Local Environment and Population.
The Company Agreed that any Resumption of Operations would be accompanied by Precautions like Installing Hydrogen Sulfide and Sulfur Dioxide Air Monitors.
The Refinery is the Defendant in several separate Class-Action Lawsuits from Residents of the Island of St. Croix, who Claim the Oil Vapor, released by the Facility, has been Detrimental to their Health.
The Chapter 11 Filing could potentially Prevent Payouts to the Plaintiffs in those Complaints.
"The business tool of corporate bankruptcy does not usually benefit normal regular people who have claims," Russell Pate, an Attorney for several of the Claimants, said, noting Creditors and Shareholders are typically Paid before Class-Action Plaintiffs in such Circumstances.
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