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Representative of Elliott's affiliate says that holders of Venezuelan bonds have secured a payment pact.

Representative of Elliott's affiliate says that holders of Venezuelan bonds have secured a payment pact.

A representative of bondholders in the United States told a U.S. Court on Monday that holders of a Venezuelan defaulted bond had reached an agreement for a preliminarily settlement with Amber Energy. This was part of the raised bid submitted by Elliott Investment Management to buy the parent company of U.S. refiner Citgo Petroleum this month.

Recently, the court auctioned shares saw improved bids from hedge funds Elliott and Vitol affiliates. This was despite the officer who oversaw the bidding round recommending a separate $7.4 billion offer by a Toronto-listed miner Gold Reserve subsidiary.

Some creditors and bidders believe that a payment agreement between the PDVSA 2020 bonds holders, which are collateralized by Citgo equity is key to winning a bid. It would remove the obstacle in the finalization of the sale process.

Other parties to the case have requested that the Delaware court wait until a separate New York court decides the validity of these bonds.

The Delaware court auctions Venezuelan-owned PDV Holding in order to pay up 15 creditors for debt defaults or expropriations that occurred in South America. The Delaware court will set a deadline soon for all bids, whether solicited or uninvited. Judge Leonard Stark announced this in a recent court hearing.

The court will confirm the Gold Reserve Group's bid, or recommend a rival offer as the winner. Reporting by Marianna Pararaga Editing Rod Nickel

(source: Reuters)