Limetree Bay Refining supplier British Petroleum hires legal counsel
British Petroleum (BP), one of Limetree Bay Refining’s main suppliers, is working with Arnold & Porter as legal counsel, according to three sources familiar with the matter.
The law firm was initially brought in as class action counsel to tackle litigation that arose from a flaring incident in May at Limetree Bay’s refinery, which sprayed oil on nearby homes, but the appointment recently expanded to a restructuring role, one of the sources noted.
The move comes as operations at the St Croix oil refinery have faced a number of missteps in restarting operations amid a controversial history of pollution. In late June, parent company Limetree Bay Energy disclosed it will shut down the refinery indefinitely due to financial problems.
Limetree Bay Refining has privately placed debt with a small group of lenders, as reported.
The refinery’s struggles affect affiliate and customer Limetree Bay Terminals, a separate borrower that has equity investors such as EIG in common with the refiner.
As such, Arnold & Porter is tasked with providing legal guidance related to both entities, the sources added.
For its part, an ad hoc group of Limetree Bay Terminals’ lenders organized with Davis Polk and PJT Partners as a financial advisor, as reported,
Limetree Bay Terminals’ USD 465m Libor+ 400bps TL due 2024 is quoted 72.438/74.938, up from trades at 70.525/73.161 yesterday (30 June), but down from 83.125/85.946 on 21 June, according to a trader.
Last year, private equity group EIG took majority control of Limetree Bay Ventures, the parent, with ArcLight remaining as an investor, according to media reports.
Messages left with the company and with Arnold & Porter were not returned. BP did not respond to a request for comment.
Leave a Reply