Backup Bidder Looking to Dismantle Refinery Calls For Delay of Final Sale, Alleges St. Croix Energy's Bid Was Slanted

St. Croix Energy's winning bid in November for the Limetree Bay Refinery was tilted from the outset, a bidder whose offering was rejected has alleged in a Wednesday filing asking the bankruptcy court in Texas handling the matter to delay the Dec. 7 sale.

St. Croix Energy won the bid on Nov. 18 in a deal valued at roughly $33 million. But Bay Ltd. has contended that its combined bid with Sabin Metal Corporation amounted to "far higher" than the St. Croix Energy offering.

"Based on Bay’s participation in the sale process and the debtors’ lack of engagement before and after the auction, Bay’s perception is the sale process was tilted from the start, and throughout, to benefit St. Croix [Energy] for reasons Bay cannot understand," reads the filing in U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, calling for the delay.

Bay Ltd. is a Texas-based contractor, and Sabin Metal Corporation is based in New York. Combined, their bid is up to $39 million. "The St. Croix bid smacks of nothing more than a disguised dismantlement bid, and in a head-to-head with Bay and Sabin, it falls far short," Bay Ltd. said in the filing.

Bay Ltd. does not hide its intention to dismantle the refinery, but it says the plan would actually benefit St. Croix, providing work for up to three years as part of the dismantling process while addressing decadeslong environmental concerns.