A U.S. judge in Delaware has recently announced an extension of the schedule for the court-organized auction of shares in the parent company of Citgo Petroleum, a Venezuela-owned refiner. The final hearing for the sales process has been moved to August 18, marking another development in the ongoing eight-year court case seeking to compensate creditors for debt defaults and asset expropriations in Venezuela.
The first bidding round last year did not meet the expectations of most companies involved, leading to a need for further rounds of bidding. Houston-based Citgo, a major player in the U.S. refining industry and owned by Venezuela’s state oil company PDVSA, has been at the center of this complex legal battle.
Earlier this year, a bid of $3.7 billion from Contrarian Funds’ affiliate Red Tree Investments was selected as the starting point for the second round of bidding. This offer includes provisions for paying holders of a defaulted Venezuelan bond. Red Tree and other competing bidders have until June 18 to submit improved offers, with the expectation that new bidders may enter the fray.
The updated schedule, approved in response to requests from Venezuela’s legal representatives, sets July 2 as the deadline for a judge to recommend the auction’s winner, followed by a period for objections until July 9. Judge Leonard Stark is working to prevent lengthy delays in the final stages of the sales process by accommodating the needs of the bidders.
Once a winner is confirmed, approval from the U.S. Treasury Department will be required, as they have been safeguarding Citgo from creditors since 2019. Despite potential delays due to increased investor interest, Judge Stark aims to conclude proceedings by late Q3 2025, according to a recent report from consultancy Aurora Macro Strategies.
As this legal saga continues to unfold, the fate of Citgo and its potential new owners remains uncertain. Stay tuned for further updates on this high-stakes auction.
(Reporting by Marianna Parraga; Editing by Rod Nickel)
