Delaware court sets start of Citgo share auction for Oct. 23

Rusoro Mining

21/07/2023 22:59

By Marianna Parraga
       HOUSTON, July 21 (Reuters) - A federal court in Delaware
set Oct. 23 as the start date for an long-expected auction of
shares in Venezuela-owned refiner Citgo Petroleum's parent to
pay creditors with judgments again the South American nation.
    The sale process, which lays out a schedule that could lead
to formal approval of any sale of shares in PDV Holding a year
from now, could lead to a breakup of the seventh largest U.S.
oil refiner.    
    U.S. Judge Leonard Stark in Delaware this week accepted a
recommendation by a court official in charge of organizing the
auction. The proceeds from any sale of shares would be used to
pay off creditors previously cleared by the court.
    The creditors include miner Crystallex International, oil
producer ConocoPhillips  COP.N , Siemens Energy, and Red Tree
Investments, which are trying to recoup some $2.7 billion over
unpaid court and arbitration rulings.
    Following a long wave of expropriations under late
Venezuelan President Hugo Chavez and the default of bonds issued
by state oil company PDVSA, the creditors flocked to U.S. courts
to enforce arbitration awards against the country.
    Another group of six companies recently won at an appeal
court their attempt to attach to the Delaware case. The firms
are O-I Glass Inc  OI.N , Huntington Ingalls Industries  HII.N ,
ACL1 Investments, Rusoro Mining  RML.V , Gold Reserve  GRZ.V 
and two Koch Industries units, who will try to cash another
$3.46 billion.

 (Reporting by Marianna Parraga)
 ((marianna.parraga@thomsonreuters.com; +1 713 371 7559; Reuters
Messaging: @mariannaparraga))