(Investing.com)– A U.S. court officer said on Monday an affiliate of hedge fund Elliott Investment Management made the best bid for the parent of Venezuela-owned refiner Citgo Petroleum, against a group led by miner Gold Reserve previously recommended as the winner.
Improved bids emerged in the final stages of the auction of PDV Holding, one of the parents of the seventh-largest U.S. refiner, following court decisions in parallel legal cases that encouraged new and improved offers.
The evaluation by court officer Robert Pincus could lead to a new recommended winner if Gold Reserve’s subsidiary Dalinar Energy does not soon match or exceed the terms submitted by Elliott’s affiliate Amber Energy.
Dalinar, whose $7.4 billion bid had been recommended as winner of the auction last month before the submission of rival unsolicited bids, has three business days to raise its bid or modify its terms, a counsel for Pincus said in a court filing.
A sale hearing for Delaware Judge Leonard Stark to make a final decision is set for mid-September.
Pincus did not provide details of the value of Amber’s bid, which was raised on August 22, but court document revealed earlier this month the company was offering $5.86 billion to creditors while also settling claims with holders of a defaulted Venezuelan bond collateralized with Citgo equity, potentially resolving $2.86 billion of claims against Citgo’s ultimate parent, PDVSA.
Amber’s proposed purchase price includes cash and non-cash considerations, and is supported by creditor Koch, the filing said.
Gold Reserve said on Tuesday that under Amber’s proposal the mining company, which is trying to cash some $1.18 billion from the auction’s proceeds for the expropriation of its assets in Venezuela, would hardly secure any compensation at all.
The auction’s proceeds are expected to compensate at least a handful of the 15 creditors fighting since 2017 to recover nearly $19 billion in U.S. courts after Venezuela expropriated assets and defaulted on debt.
