Elliott Investment's Amber Emerges as Top Bidder in Citgo Auction

Amber Energy, an affiliate of Elliott Investment Management, made the top bid in the auction for Citgo Petroleum’s parent, surpassing Gold Reserve’s offer. With a decision set for mid-September, the auction seeks to resolve claims against PDVSA, Citgo's ultimate parent, and compensate creditors from Venezuela's 2017 default.

An affiliate of Elliott Investment Management has emerged as the front-runner in acquiring the parent of Citgo Petroleum, beating the previously favored bid from Gold Reserve. This development came after new bids flooded the auction in its final stages, spurred by recent court rulings.

Court officer Robert Pincus's assessment introduces a potential shift, urging Gold Reserve's Dalinar Energy to either enhance their $7.4 billion offer or revise its terms. They have a three-day window to make these adjustments according to Pincus's legal advisory.

As the sale hearing set for Delaware's Judge Leonard Stark looms in mid-September, all eyes are on Amber Energy's revised bid. Offering $5.86 billion with considerations to settle Citgo's substantial claims, Amber's proposal could mark a significant step in addressing the nearly $19 billion owed to creditors affected by Venezuela's past defaults and expropriations.

(With inputs from agencies.)