Fierce Bidding Wars: The Battle for Citgo's Future

In a heated corporate showdown, affiliates of Contrarian Funds, Gold Reserve, and Vitol are sharpening their bids to gain control of Citgo Petroleum's parent company. As the list of potential bidders narrows, insiders reveal preparations are underway to finalize offers for the U.S.-based refiner, owned by Venezuela.

The Delaware court, orchestrating the auction since 2017, aims to pay off $20.6 billion to 16 creditors stemming from Venezuela's debt defaults. Despite government objections, Citgo's prized status is at stake. Rivals, including an Elliott affiliate, are scrutinizing legal risks, which could deter bidding.

Red Tree Investments, approved for a $3.7-billion starting bid, faces competition in improving offers by late May. Legal complexities and financial setbacks cast shadows over the auction, with U.S. Treasury approval required for final sale. The process remains fraught with challenges and potential delays.

(With inputs from agencies.)