Creditors and Bidders Reject Gold Reserve's Bid for Citgo

Creditors, bidders object to recommended outcome of U.S. auction for Citgo parent company shares, citing concerns about $7.4 billion offer by Gold Reserve group. Auction aims to compensate up to 15 creditors fighting to recover nearly $19 billion. Gold Reserve bid may cover 11 creditors, excluding bondholders’ claims.

Confusion and objections arise over Gold Reserve bid for Citgo parent company. Some argue pact with bondholders is essential before transfer, while others claim bondholders must win in New York court first. Judge Stark anticipates further litigation post-bid recommendation. Objections accepted until July 9, final hearing on August 18.

Bondholders seek relief in New York court on July 10 to preserve their claim against Gold Reserve bid. They criticize bid for interfering with their rights and claim special master encouraged bids lacking closure prospects. ConocoPhillips warns bondholders blocking bid could render financing structure impossible. $7.3 billion Elliott Investment Management bid rejected last year, prompting new auction.

Read more at Yahoo Finance: Bondholders, bidders object to Gold Reserve group’s Citgo bid