Battle Over Citgo: Venezuelan Interests Challenge Auction Ruling

Venezuelan parties have appealed to a U.S. court to overturn a Delaware judge's decision to auction Citgo Petroleum’s parent company shares to Elliott Investment Management. They argue the sale process was flawed due to conflicts of interest and legal errors, endangering Citgo's value.

Venezuelan interests are urging a U.S. court of appeals to annul a recent decision by a Delaware judge to auction shares of Citgo Petroleum's parent, a move seen as favoring Elliott Investment Management. The request highlights alleged conflicts of interest and legal mistakes that reportedly skewed the auction process.

The auction, which aims to sell shares to an affiliate of Elliott Investment, has come under fire from Citgo's board. They claim the neutrality required in such proceedings was compromised, potentially diminishing the value of the vital petroleum refiner.

Citgo's board remains resolute, committed to deploying ongoing defenses to protect the company's interests, according to an official statement released on Tuesday.

(With inputs from agencies.)