Lawyers represent Venezuela and the companies it controls Citgo Petroleum Refinery I filed an appeal with United States Court of Appeals for the Third CircuitA. competes An order issued by a judge in Delaware last week allows the sale of shares in… BDV Holding, The court was informed in the documents submitted this Monday (1).
On Saturday, a judge in the United States authorized the sale of shares in the company controlling the company. Citgo Petroleumaffiliated with the government of Venezuela, affiliated with the company Elliott Investment ManagementAfter this week it approved a $5.9 billion offer submitted by the company in an auction organized by the courts to pay off creditors linked to Venezuela.
The sale order represents the last major legal step to end a two-year auction that was intended to repay up to 15 creditors for debt defaults and property seizures that occurred in the South American country.
In a case started in 2017 by Crystallex Mining Company v. Venezuela, a Delaware court found that Citgo’s controlling holding company, PDV Holding, was liable for the company’s debts. OPEC member country, This paves the way for more than a dozen other creditors to join the auction.
The proposal submitted by amber energy, Elliott — which includes a master agreement to pay $2.1 billion to holders of distressed Venezuelan bonds — was recommended earlier this year by the receiver in charge of the auction, replacing its previous recommendation of a competing bid by Gold Reserve.
This move sparked a wave of objections and challenges to Amber’s proposal, which was rejected by Delaware Judge Leonard Stark. However, the parties involved in the process, including Venezuela, stated that they would appeal Stark’s confirmation of the proposal.
“The consideration to be provided by the purchaser under the Stock Purchase Agreement is fair, adequate and reasonable consideration for PDVH shares and constitutes an appropriate price for the purchase of those shares in accordance with the terms of the Sale Action Order,” Judge Stark stated in his decision.
More than six creditors are expected to receive money from the auction if the deal is completed. The deal is expected to close next year, subject to approval from regulatory authorities and the Finance Department United States TreasuryAmber reported this week.
Among these creditors are oil producers ConocoPhillipsMining companies Crystallex and Rusuru Mineneg, industrial clusters Hello glass and hut.
Upon completion of the sale, the purchaser will have no obligations related to Citgo’s ultimate parent company, Venezuelan state-owned company PDVSANeither does the Republic of Venezuela, the judge said.