Breaking News: U.S. Hedge Fund’s Low-Ball Bid Locks in Control of Citgo Petroleum in Proposed Court Agreement
In a recent court filing, creditors of Citgo Petroleum have raised concerns over a proposed agreement with Elliott Investment Management’s Amber Energy, which could solidify the fund’s low-ball bid for the oil refiner. The offer, deemed economically unviable and deficient, has sparked backlash and put a halt to any immediate changes in Citgo’s ownership.
Creditors are urging the court to reconsider the terms of the deal, citing violations of Delaware law and unfair advantages given to Elliott’s Amber. The auction process has been described as “severely off course” by Crystallex, the company behind the lawsuit holding Citgo’s parent company, PDV Holding, liable for Venezuela’s debts.
Despite objections from creditors, the court officer overseeing the auction, Robert Pincus, has proposed a revised sale schedule that would allow for a final recommendation in late January. He also opposes reopening Citgo’s financial data until December 9th, in an effort to maintain confidentiality and potentially approve a breakup fee if a superior bid is accepted.
Overall, the future of Citgo’s ownership remains uncertain as various parties involved continue to voice their concerns and push for a fair and transparent sales process.