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Blue Water bids $10 billion for Citgo parent

Blue Water Acquisition Corp announced on Friday it had submitted an offer worth $10 billion to purchase the parent company of Venezuelan-owned refiner Citgo Petroleum. The proposal also included a $3.2 million settlement for holders of Venezuelan bonds that were in default.

The auction for PDV Holding's payment to up to 15 creditors was closed by a U.S. court last month, after an officer who oversaw the auction received improved bids. However, the court stated that it would accept unsolicited bids if they were submitted after the deadline.

Blue Water Acquisition Corp. is a special-purpose acquisition company that was formed to identify high-potential businesses in diverse sectors. This includes healthcare.

The company offers cash or stock distributions for creditors and settlements to holders of PDVSA 2020 bonds, who will be paid in cash or shares of the publicly-listed entity that owns Citgo.

In a press release, Blue Water CEO Joseph Hernandez said that the $10 billion plan would allow creditors to recover immediately and also participate in Citgo's future as a U.S. publicly traded company.

Robert Pincus, a court officer, changed his recommendation last month to Elliott Investment Management affiliate Amber Energy. He had chosen a subsidiary owned by miner Gold Reserve in July as the frontrunner. Now, Gold Reserve is trying to disqualify Elliott's affiliate bid.

Next week, the Delaware court will hold a procedure conference ahead of a hearing on the final sale in mid-September. Judge Leonard Stark would then make a decision about who won the auction.

The court has not yet released any information regarding Blue Water's bid in public dockets as of Friday afternoon. (Reporting and editing by Marianna Pararaga)

(source: Reuters)