U.S. Judge Approves Citgo Parent Share Sale to Elliott Affiliate

A U.S. judge has approved the sale of shares in Citgo's parent company, owned by Venezuela, to an Elliott affiliate. This follows a $5.9 billion bid to pay off Venezuela-linked creditors after defaults and expropriations. The sale should conclude next year, pending regulatory approvals.

A U.S. judge has authorized the sale of shares in the Venezuela-owned parent of Citgo Petroleum to an affiliate of Elliott Investment Management. This decision follows a $5.9 billion bid approved earlier in the week during a court-organized auction aimed at settling debts owed to Venezuela-linked creditors.

The case was initially brought by miner Crystallex in 2017, which resulted in the Delaware court holding Citgo's parent, PDV Holding, liable for Venezuela's debt. This ruling allowed numerous other creditors to join the auction. Elliott's Amber Energy had its $2.1 billion bid recommended, overturning a previous favor towards rival Gold Reserve.

The auction faced objections which were dismissed by Judge Leonard Stark, but appeals are anticipated. Should the transaction finalize next year, creditors like ConocoPhillips, Crystallex, and others stand to benefit. Regulatory and U.S. Treasury Department approvals are still pending for the sale's closure.

(With inputs from agencies.)