Bidding Battles for Citgo: Clash of Creditors and Bondholders
A heated auction drama unfolds over Citgo, a U.S. refiner tied to Venezuelan debt. The bidding contest pits creditors against bondholders, as the court moves towards a conclusion. Amid a bidding war and legal disputes, the outcome remains uncertain, impacting multiple stakeholders and billions in claims.
The auction of Venezuela-owned Citgo Petroleum is evolving into a fierce contest between creditors seeking compensation for their seized Venezuelan assets and holders of a defaulted PDVSA bond.
As the Delaware court approaches the conclusion of the two-year bidding process, the fate of the seventh-largest U.S. refiner, owned by Venezuela and found accountable for the country's debt, hangs in the balance. Court officer Robert Pincus adjusted his initial recommendation in favor of Amber Energy, sparking objections from Gold Reserve.
The shift has reignited debates over the pricing of PDVSA 2020 notes, intensifying the legal standoff between expropriated asset owners and bondholders. As the final decision looms, stakeholders remain divided over strategies and potential outcomes.
(With inputs from agencies.)
Google News