Contested Auction for Citgo Shares Spurs Debate Among Creditors
Creditors criticized the terms of a conditional offer in the auction of Citgo shares, driven by a bid that values the company at up to $7.286 billion. While the court looks to finalize the bid to maximize value, significant creditors, including Crystallex and ConocoPhillips, remain wary of the proposal.
Creditors seeking proceeds from a U.S. court-ordered auction of Citgo Petroleum's parent company shares criticized the terms of a conditional offer selected in the second bidding round. An affiliate of Elliott Investment Management won the share auction with a bid valuing Citgo's enterprise at $7.286 billion.
Amber Energy's bid, pending bondholder claim resolutions, is seen as pivotal in maximizing Citgo's value for creditors, according to Ray Schrock, the attorney overseeing the auction. Schrock emphasized the importance of finalizing the bid to avoid losing a solid offer, pointing out that objecting creditors would have a chance to review the terms later.
However, Crystallex, which first brought the case against PDV Holding in 2017, and other creditors like ConocoPhillips, expressed concerns. They believe the terms from Elliott's Amber Energy make it unlikely for creditors owed $21.3 billion to be fully compensated.
(With inputs from agencies.)
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