Miner Gold Reserve Competes in High-Stakes Citgo Auction
Miner Gold Reserve's subsidiary, Dalinar Energy, has submitted an improved bid for Citgo Petroleum's parent company in a court-organized auction. The decision on the winning bid is due next month. Dalinar has increased its bid and financial backing, competing against a $5.9 billion offer by Elliott Investment's affiliate.
Miner Gold Reserve's subsidiary, Dalinar Energy, is ramping up efforts to acquire the parent company of Citgo Petroleum through a court-organized auction. This comes as court officials plan to decide on the winning bid by next month amid stiff competition.
Previously, an affiliate of hedge fund Elliott Investment Management put forth a leading bid of $5.9 billion. Dalinar, seeking to challenge this offer, has substantially increased its bid, enhanced financial support, and added non-economic assurances to strengthen its position.
In June, Dalinar made a $7.4 billion offer but fell short because it lacked a settlement plan for Venezuelan bondholders. Conversely, Elliott's affiliate, Amber Energy, successfully reached an agreement with those bondholders to resolve a $2.86 billion claim. However, recent legal motions aim to disqualify Amber's bid, leaving the final recommendation to court officer Robert Pincus and a ruling expected soon.
(With inputs from agencies.)
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