“The bankrupt refinery signed a forbearance agreement with bankrupt lender Arena Investors LP on Monday that sets a deadline Tuesday to remedy the default,” the WSJ reported. “Arena said she has the right to terminate her loan with Limetree if it is not paid by then, according to documents from the US bankruptcy court in Houston.”
The Sainte-Croix refinery, which filed for bankruptcy in July after announcing an indefinite shutdown due to repeated toxic emissions and oil sprays, has short cash rations and a tight schedule to find a buyer and close. a sale before the end of the year. .
The alleged fault is the second that Arena has repelled. The first was when Limetree missed a deadline to produce a budget and an exit plan from operations. In this case, Arena called the default and reduced its total funding offer – a move that angered U.S. bankruptcy judge David Jones and was overturned.
Neither Limetree nor Arena responded to requests for comment before the WSJ article was published. The Wall Street Journal article can be read online.