Black Lion submits $8 billion for Citgo's parent in court auction

From Yahoo Finance: 2025-06-25 10:28:00

Black Lion Citgo Group, led by Black Lion Capital Advisors, offers $8 billion for Citgo Petroleum’s parent in a court auction to pay off creditors for debt defaults and expropriations in Venezuela. Red Tree Investments’ $3.7 billion bid started the process, with a winner expected by July 2 and final hearing on August 18.

Black Lion’s $8 billion bid includes base price plus fees and insulation funds up to $3 billion, backed by Quazar Investment, Anex Management, and Fortress Management. The group did not participate in the initial bidding phase, aiming to outdo competitors like Gold Reserve, Rusoro, and Koch with improved offers.

Court officer Robert Pincus predicts resolution of legal cases will spur more bids in the final stretch of the auction. Vitol and Elliott Investment Management affiliates are potential bidders, but Black Lion’s offer surpasses all known bids and is supported by institutional funding exceeding $12 billion. Judge Leonard Stark prioritizes price over certainty of closure.

Pending creditors request U.S. Treasury Department clarification on Citgo’s protection, preventing ownership changes. Completion of the sale process nears, with the auction’s winner to be recommended by July 2 and a final hearing on August 18.



Read more at Yahoo Finance: Black Lion submits $8 billion cash bid for Citgo’s parent