Bondholders could jeopardize CITGO’s auction
At least two groups have consulted with other U.S. courts to intervene after Amber Energy was selected as the acquirer of the company.
Weeks after Amber Energy announced it had been chosen to acquire CITGO Petroleum Corporation, bondholders have stepped forward to intervene in the auction.
At least two groups holding billions of dollars in Venezuelan bonds and notes have turned to other U.S. courts to enforce their claims, as reported by Reuters. The case is being managed by Robert Pincus, court officer of the United States District Court for the District of Delaware, who has requested the judge to block creditors currently participating in the sale process from seeking relief in other courts.
This development adds further uncertainty regarding which company is best suited to take over the firm, a situation that has persisted for over seven years.
Amber is a U.S.-based group of energy executives backed by a group of strategic U.S. energy investors, including Elliott Investment Management L.P. The latest lawsuit enabled Amber to impose conditions to its $7.3 billion offer for Citgo's 807,000-barrel-per-day refining network and retail business.
If rival claims are not blocked in the coming days, Amber's offer could be withdrawn shortly thereafter, complicating the future of the auction.
