Citgo Bidding Now Open for Competitors to Challenge Elliott Firm
A US judge has reopened the bidding for Citgo, inviting new offers to surpass Elliott’s $7.3 billion bid
Citgo, Elliott Investment Management, Wilmington, Venezuela, Crystallex, Exxon Mobil
Wilmington: So, a US judge just hit the reset button on the bidding for Citgo Petroleum. This means other companies can jump in and try to outbid Elliott Investment Management, which has a $7.3 billion offer on the table.
Judge Leonard Stark made this call after hearing arguments recently. He’s opened the door for other creditors like Gold Reserve and Crystallex to throw their hats in the ring. It’s a big deal because this has been a long, drawn-out legal saga over who controls Citgo, which is a major player in the US oil market.
Citgo is owned by Venezuela and runs three refineries here. The money from selling it will help pay back creditors owed around $20 billion due to asset seizures in Venezuela. Crystallex, which had its gold mines taken by Hugo Chávez, is first in line for a big chunk of that cash.
Stark had hoped to wrap this up by the end of the year, but now he’s set a new hearing for late July. He’s also ordered a fresh marketing period to see if more interested parties can be found.
Some creditors weren’t happy with how the auction was going, saying it wasn’t fair and favored Elliott too much. Stark agreed, noting that there were issues with how information was shared about the bids. He wants to make sure everyone has a fair shot at this.
As this unfolds, it’s clear Stark is trying to get the best deal for the creditors. Some of them are even taking their claims to courts outside Delaware, which adds more complexity to the situation.
Citgo is a big deal in the oil world, processing over 800,000 barrels a day. It’s the seventh-largest refiner in the US, so whoever ends up with it will have a significant asset on their hands.