From Yahoo Finance: 2025-03-27 16:55:00

A U.S. federal judge is navigating a fresh dispute between creditors as an auction for shares in Citgo’s parent company, PDV Holding, is rebooted with a minimum bid of $3.7 billion recommended by Contrarian Funds’ affiliate Red Tree Investment. Creditors seek to recoup $21.3 billion amidst political risks and legal battles.

The auction for Citgo, a U.S. refiner owned by Venezuela, has become a battleground for 18 creditors seeking to recover from debt defaults and expropriations by Venezuela and PDVSA. The highest bid of $7 billion is contested by Red Tree’s lower offer due to conditions included in the bid. Other bidders include Vitol and a consortium of Gold Reserve, Rusoro, and Koch.

The auction for Citgo’s parent company, PDV Holding, has attracted bids from various creditors and companies, including a controversial $3.7 billion bid from Red Tree Investment. The bid includes provisions for bondholders of PDVSA, the parent company of Citgo, potentially resolving key obstacles in the auction process.

Creditors, including ConocoPhillips with claims of almost $12 billion, are pursuing various legal strategies to maximize proceeds from the auction. Citgo, the U.S. seventh-largest refiner, saw profits decline significantly last year, contributing to the challenges faced by creditors in recouping their claims.

The auction for Citgo’s parent company, PDV Holding, has become a complex legal battle involving multiple creditors and companies seeking to recover from debt defaults and expropriations by Venezuela. The highest bid of $7 billion is contested by a lower offer of $3.7 billion from Red Tree Investment, sparking legal disputes and objections from other creditors.



Read more at Yahoo Finance: New creditors’ battle emerges in Citgo auction reboot