US court sets Oct. 23 start for Citgo share auction process

us-court-sets-oct.-23-start-for-citgo-share-auction-process
US court sets Oct. 23 start for Citgo share auction process

The auction of shares in Venezuela-owned refiner Citgo Petroleum’s parent company, PDV Holding, to pay off creditors with judgments against Venezuela, will begin on October 23, according to a U.S. court. The sale process could take up to a year to complete and gain formal approval. The proceeds from the sale will be used to pay off previously cleared creditors, and Citgo is the only asset held by PDV Holding.

Venezuela’s oil minister, Pedro Tellechea, expressed concern about any sale of Citgo without Venezuela’s participation, stating that it is not just a PDVSA asset but an asset of all Venezuelans. Horacio Medina, head of the ad-hoc board overseeing the refiner, and a spokesperson for Citgo declined to comment on the matter.

Venezuela’s attempt to stop the auction was dismissed by U.S. Judge Leonard Stark, who deemed their objection “utterly unpersuasive.” Stark stated that there is no reason to further delay the sale process, considering the lengthy history of the case.

Although the auction is not frozen by the U.S. Treasury Department’s extension of a license protecting Citgo from holders of a defaulted bond, any winners in the process would require U.S. approvals.

Following expropriations under former Venezuelan President Hugo Chavez and the default of PDVSA bonds, creditors sought arbitration awards against the country in U.S. courts. The creditors, including Crystallex International, ConocoPhillips, Siemens Energy, and Red Tree Investments, are seeking to recoup approximately $2.7 billion.

Six additional companies, including O-I Glass Inc, Huntington Ingalls Industries, ACL1 Investments, Rusoro Mining, Gold Reserve, and two Koch Industries units, recently won the right to attach claims to the Delaware case. These companies are aiming to recover $3.46 billion.

The article was written by Marianna Parraga and Gary McWilliams, with editing by Richard Chang and Grant McCool. The Thomson RushHourDaily Trust Principles are followed in their reporting. Marianna Parraga, based in Houston and born in Venezuela, has 20 years of experience covering Latin America’s oil and gas industries and has written a book called “Oro Rojo” about PDVSA.

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Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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