Creditors Critique Citgo Share Auction Terms Amid $7.3 Billion Bid

Creditors have criticized the terms of a conditional offer from Elliott Investment Management in the auction of shares in Citgo’s parent company. The bid values Citgo at $7.286 billion, but creditors claim they are unlikely to be paid from the proceeds, despite claims totaling $21.3 billion.

Creditors seeking proceeds from an auction of shares in Citgo Petroleum's parent company have widely criticized the terms of a conditional offer selected in the U.S. court's second bidding round.

On Friday, an Elliott Investment Management affiliate was named the presumptive winner of the share auction with a bid that values the Venezuela-owned refining company Citgo at up to $7.286 billion. Crystallex, the company that first brought a case against Citgo's parent PDV Holding in 2017 over unpaid judgments, said the proposed terms by Elliott's Amber Energy would mean creditors with collective claims of $21.3 billion are "unlikely to ever be paid."

Amy Wolf, an attorney for ConocoPhillips, which holds the largest claims, remarked that the sales process is not concluding as many had hoped.

(With inputs from agencies.)