U.S. Court Navigates Complex Auction to Determine Citgo's Future Control

A U.S. court officer overseeing an auction has selected Elliott Investment Management's conditional offer for shares in Citgo's parent. This auction could determine the future control of the Venezuela-owned oil refiner. Issues remain due to claims by defaulted bondholders, and the dispute may extend the sales process.

A conditional offer for shares in Citgo Petroleum's parent by financial firm Elliott Investment Management has been chosen by a U.S. court officer overseeing an auction. This event could determine the future control of the Venezuela-owned oil refiner, according to sources.

The U.S. District Court in Delaware is auctioning shares in Citgo's parent PDV Holding to repay up to $21.3 billion in claims against Venezuela and state-oil firm PDVSA stemming from expropriations and debt defaults. A second and final bidding round concluded earlier this year, which led to negotiations on terms.

Elliott's offer, which includes cash and credit, is still subject to the resolution of claims by holders of defaulted Venezuelan bonds seeking the same assets. However, the value of Elliott's bid remains undisclosed, and the company declined to comment.

(With inputs from agencies.)