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Sources say that Vitol Group has bid more than $10 billion for Citgo parent company.

Two sources familiar with the bid told us on Wednesday that a group led by commodities trading company Vitol had submitted a bid in excess of $10 billion during the final hours of an auction organized by a court for shares of Citgo Petroleum's parent company, which is owned and operated in Venezuela.

Delaware court officer who oversees the auction will recommend a winner by Wednesday, unless he asks for more time to review bids made at the last minute.

The proceeds from the auction of PDV Holding - parent company of the seventh biggest U.S. refiner - are intended to compensate at the very least a few of the 15 creditors who have been fighting in U.S. court since 2017 for nearly $19 billion after Venezuela expropriated its assets and defaulted.

One source said that the Vitol-led consortium's offer included about $5 billion cash, with the remainder in credit bids, covering up to fourteen claims. It also includes provisions to pay holders who defaulted on Venezuelan bonds.

Vitol didn't immediately respond to a comment request.

Vitol was a participant in the first round of bidding for PDV Holding in 2013 and in a competition to choose a starting offer earlier this year, won by Red Tree Investments. But it's new

Bidders

In the final mile of the auction new and better offers have been made following court rulings in parallel legal proceedings that have encouraged them.

A consortium led Chicago-based Black Lion Capital Advisors also made an offer in recent days. Meanwhile, a consortium headed by Gold Reserve's subsidiary said that it had submitted two revised bids. Reporting by Marianna Paraga, Editing by Julia Symmes Cobb and Chizu Nomiyama

(source: Reuters)