US Court Receives Initial Bids for Citgo Share Auction
Interest in Citgo Share Auction
A U.S. court is currently evaluating 12 preliminary bids from various private investment funds and companies looking to participate in an auction of shares of Citgo Petroleum’s parent company. This level of interest has been described by Citgo as “disappointing.”
Creditors’ Claims and Auction Process
Creditors with claims exceeding $22 billion have turned to U.S. courts to enforce arbitration awards and rulings through the auction of shares in Citgo’s parent company. Despite efforts to finalize the list of creditors and their priorities, the process remains ongoing.
Bidding Round and Participants
The court, along with investment banker Evercore Group, initially identified 90 potential parties for the bidding round. Eventually, 30 parties signed agreements and received information, with 12 submitting indications of interest. These bidders, including private investment funds and companies in the petroleum refining industry, remain undisclosed due to the sealed nature of the process.
Challenges and Next Steps
Concerns have been raised about the current level of interest, prompting Citgo to request additional time to analyze the proposals. Possible objections from creditors are also expected. The ongoing sale, triggered by legal battles dating back to 2017, has attracted bids using claims in lieu of cash, with companies like ConocoPhillips participating.
Key Players in the Auction
Energy giants like Chevron, Reliance Industries, Koch Industries, and Valero Energy, along with activist investors, have shown interest in the auction process. However, uncertainties remain regarding the final outcome and the potential impact on the case’s scope.
