The Citgo case could be about to be decided after the Delaware court set the deadline for the share auction for this Friday, August 29. The court also set the final hearing for September.
In this regard, US judicial official Robert Pincus is preparing to “recommend a winner in the auction of shares of PDV Holding, the parent company of Citgo Petroleum. The decision will follow a tight competition between Amber Energy, a subsidiary of Elliott Investment Management, and Dalinar Energy, linked to the mining company Gold Reserve.”
The proposals will be evaluated
As a preliminary step, Pincus must evaluate whether Gold Reserve’s $7.4 billion offer remains the strongest or whether one of the competing bids is superior. “Amber Energy and Gold Reserve are virtually tied, but their offers differ in key aspects.”
For example, the Elliott subsidiary argues that it has reached an agreement with more than two-thirds of the holders of defaulted Venezuelan bonds. On the other hand, “Gold Reserve is banking on the support of 11 of the 15 plaintiffs demanding cash payments,” according to Reuters.
Amber’s proposal, which includes $5.86 billion for creditors and $2.86 billion for bondholders, is on the table. Gold Reserve has no specific clause for bonds, although it does cover most claimants with direct cash.
Negotiations to pay creditors
Regarding the case, it is known that Judge Leonard Stark instructed Pincus to prioritize price over certainty of closing, placing the economic valuation of the bids at the center of the decision. The court is seeking up to “$19 billion to pay 15 international creditors, as compensation for debt defaults and expropriations in Venezuela”.
M.Pino
Source: elnacional
(Reference image source: Nathan Jeon on Unsplash)
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