Venezuelan CITGO Asset Sale in Disarray After Last-Minute Bids Interfere
The court-ordered sale of Venezuelan refiner CITGO is currently in a state of delay and uncertainty as new bids have surpassed the previously recommended offer. The bids, submitted by trading giant Vitol and vulture fund Elliott Management, have sparked a review by the court-appointed Special Master, Robert Pincus.
The bids from Vitol and Elliott's affiliate, Amber Energy, are reported to be worth approximately $8.5 billion and $8.8 billion respectively, significantly higher than the $7.4 billion offer from Gold Reserve's Dalinar Energy.
The sale of CITGO's parent company, PDV Holding, was initiated in late 2022 to satisfy creditor claims. The process was initiated by Canadian miner Crystallex thanks to an "alter ego" ruling making PDVSA liable for Venezuela's debts.
The U.S. District Judge Leonard Stark has postponed the final sale hearing, originally scheduled for August 18, 2025, to allow more time to evaluate these recent bids. The hearing for final sale approval has been delayed to September 2025 to allow this assessment, and a decision on the winning bid is pending.
Elliott’s Amber Energy has reportedly reached agreements with more than two thirds of holders of Venezuelan defaulted bonds, which may affect the evaluation. On the other hand, Gold Reserve covers more claimants in cash proceeds but lacks a payment plan for these bondholders.
CITGO, which is currently under the management of the US-backed opposition, owns refineries in Illinois, Louisiana, and Texas with a combined processing capacity of 769,000 barrels per day (bpd). The company's liabilities have ballooned to $20.6 billion due to accusations of malfeasance and conflicts of interest by former self-proclaimed "interim president" Juan Guaidó and associates.
The sale of CITGO is subject to Washington's approval, and the US Treasury has pledged a "favorable licensing policy." The Maduro government has denounced the court-led sale of CITGO as "the theft of the century" and vowed to challenge the loss of the Houston-based refiner.
The prospects of the commodities trader's proposal are boosted by reported negotiations of a settlement with PDVSA 2020 bondholders. Gold Reserve criticized the consideration of offers after the bidding period had closed and the undisclosed specifics of their respective terms. Court-appointed Special Master Robert B. Pincus requested a postponement of the sale hearing to evaluate these late bids.
In conclusion, the court is evaluating competing higher bids from Elliott and Vitol against Gold Reserve’s earlier offer. The hearing for final sale approval has been delayed to September 2025 to allow this assessment, and a decision on the winning bid is pending.
- The delay in the final sale hearing for CITGO, originally scheduled for August 2025, is due to the court's need to evaluate recent bids from trading giants like Vitol and Elliott Management, whose proposed offers are in the realm of finance, significantly surpassing the previous $7.4 billion offer from Gold Reserve's Dalinar Energy.
- The competitive landscape of the CITGO sale has shifted with the submissions of higher bids from industry players such as Vitol and Elliott's affiliate, Amber Energy, which have sparked extensive discussions within business and politics, potentially impacting the general news landscape as the court-appointed Special Master, Robert Pincus, weighs these proposals.
