(Investing) – HOUSTON -A U.S. judge in Delaware has extended the schedule for a court-organized auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, moving the sales process’s final hearing to August 18, according to a filing on Wednesday.
The eight-year court case, aimed at compensating creditors for debt defaults and asset expropriations in Venezuela, has endured multiple delays. A first bidding round last year failed to satisfy most of the companies expecting to cash proceeds.
Houston-based Citgo, ultimately owned by Venezuela’s state oil company PDVSA, is the seventh-largest U.S. refiner.
Earlier this year, a $3.7-billion offer by Contrarian Funds’ affiliate Red Tree Investments was selected by the court as a starting bid in the second bidding round. The offer includes an agreement to pay holders of a Venezuelan defaulted bond.
Red Tree and rival bidders have until June 18 to submit improved offers. A court officer overseeing the auction last month said new bidders were expected to emerge.
The new calendar, approved after lawyers representing Venezuela requested more time for due diligence and to secure robust bids, sets July 2 as the deadline for a judge to recommend the auction’s winner, with a period for submitting objections through July 9.
Judge Leonard Stark is trying to avoid long delays in the last part of the sales process by moving deadlines only at bidders’ request. Once confirmed, the auction’s winner will need approval by the U.S. Treasury Department, which has been protecting Citgo from creditors since 2019.
“While heightened investor engagement may marginally delay the auction hearing, Judge Stark remains on course to finalize proceedings by late Q3 2025,” said consultancy Aurora Macro Strategies in a report last week.
