The special master overseeing the auction of Citgo’s parent company, PDV Holding Inc. (PDVH), has scrapped his proposed sales plan after realizing it failed to garner sufficient support from creditors. Robert Pincus, appointed by the court to lead the sale, informed U.S. Circuit Judge Leonard P. Stark on Tuesday that a new approach is necessary to address concerns about timing, transparency, and competitive bidding.
The auction is part of a long-running effort to satisfy a $1.2 billion arbitral award owed to Crystallex International Corp. and other creditors of Venezuela.
Original Plan Abandoned
Pincus revealed in September that he had selected Amber Energy Inc., an affiliate of hedge fund Elliott Investment Management LP, as the leading bidder with a $7.286 billion offer. However, in his latest filing, Pincus acknowledged the plan lacked adequate support and proposed a “significant pivot” to streamline the process.
Instead, Pincus suggested reopening the bidding process after a Dec. 13 status conference. Potential bidders would be granted access to a virtual data room, followed by 90 days to submit final bids.
Sale’s Importance to Creditors
PDVH, the indirect parent company of oil giant Citgo, is a U.S.-based subsidiary of Venezuela’s state-owned Petróleos de Venezuela SA (PDVSA). Citgo represents Venezuela’s most valuable seizable asset, making it a critical resource for satisfying not just Crystallex’s claim but those of numerous other creditors owed billions.
