Venezuela Contests Citgo Sale Over Alleged Court Bias

Venezuela's lawyers have challenged a Delaware judge's decision to authorize the sale of PDV Holding. Sales in a U.S. court-organized auction, facing Venezuelan appeals, involves significant U.S. interests.

In a bid to reverse a Delaware judge's order, Venezuela has lodged an appeal with the U.S. Court of Appeals for the Third Circuit. This motion follows last week's approval by Judge Leonard Stark, allowing the sale of PDV Holding's shares, the parent company of Citgo, to hedge fund affiliate Amber Energy.

The Venezuelan legal team has criticized the sale process, citing deficiencies, irregularities, and potential conflicts of interest involving court advisors. Both Amber Energy and the court officer have denied these allegations, while prior objections from Venezuela and rival bidder Gold Reserve were dismissed by Judge Stark.

This auction aims to address compensation owed to creditors due to Venezuela's debt defaults and asset expropriations, benefiting companies like Crystallex, Rusoro, and ConocoPhillips if concluded successfully. The sale is pending the U.S. Treasury's approval and expected to finalize next year.

(With inputs from agencies.)