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Creditors seeking repayment from the auction of shares in Citgo Petroleum’s parent company have strongly opposed the terms of a conditional offer made by an affiliate of Elliott Investment Management. The offer was selected during the second round of bidding in a U.S. court process.
On Friday, Elliott’s affiliate, Amber Energy, was named the presumptive winner of the share auction, with a bid valuing Venezuela-owned Citgo at up to $7.286 billion. However, Crystallex, the company that originally brought the case in 2017 and holds the highest-ranking claim, criticized the offer’s terms. They argued that the proposed bid would likely leave the creditors, who collectively claim $21.3 billion, without proper compensation.
Amy Wolf, representing ConocoPhillips, which holds the largest claims against Citgo’s parent company PDV Holding, expressed dissatisfaction with the auction’s outcome. “The sales process is not ending in the way we all would have liked,” Wolf stated, highlighting concerns about the fairness and efficacy of the sales proceedings in repaying creditors for Venezuela’s expropriations and debt defaults.