Judge Restarts Bidding Process for Citgo Petroleum

A U.S. judge has restarted the bidding process for Citgo Petroleum's parent company, PDV Holding, allowing creditors to submit new offers to surpass Elliott Investment Management's previous $7.3 billion bid. Judge Leonard Stark's decision responds to criticism over transparency and aims to foster competition among creditors, including Crystallex, Gold Reserve, and others owed a combined $21 billion by Venezuela. The revised auction process may lead to a final sale by mid-2025 and includes a potential 'stalking horse bid' to establish a minimum price. Concurrently, Stark has permitted lawsuits by Gramercy Distressed Opportunity Fund and others to proceed, which could affect auction outcomes but were deemed not significantly detrimental to bidder interest. The court's move reflects a complex interplay of legal and financial mechanisms as Venezuela seeks to settle its debts while navigating the international investment landscape. A new hearing is set for late July to further assess the auction's progress.