U.S. court officials seek a three-week extension to finalize the Citgo shares auction to repay Venezuela’s debts, pushing the court decision to October.
Bollywood Fever: U.S. court officials handling the auction of shares in a Citgo Petroleum parent company to repay Venezuela’s debts have requested more time to complete their work, according to a court filing on Wednesday. Negotiators require an additional three weeks to finalize discussions and set deal terms, the filing stated. Talks with bidders have made “significant progress,” but will not meet the court’s July 31 deadline.
The unprecedented auction is expected to lead to an ownership change of Venezuela’s foreign crown jewel. A Citgo parent company was found liable for the South American country’s unpaid debts and defaults, resulting in its shares being seized by a U.S. court.
Houston-based Citgo is the seventh-largest U.S. oil refiner, with three refineries that can process up to 807,000 barrels per day of crude oil into fuels. In 2019, it severed ties with its ultimate parent, Caracas-headquartered state oil company PDVSA, after the U.S. imposed sanctions on Venezuela.
Court officer Robert Pincus, who is overseeing the auction, requested a delay until August 22 to complete the evaluation of bids. The filing did not name the companies or groups involved in the discussions. The additional time will push a court hearing to choose the winner until October 15.
Earlier this month, Pincus informed the court that he had received “multiple bids that were actionable.” However, on Wednesday, he asked for an “extension of time to finalize discussions with the Second Round Bidders and finalize the Sale Transaction.”
The extension aims to ensure a thorough evaluation of the bids and the best possible outcome for settling Venezuela’s debts. The auction’s outcome will significantly impact Citgo’s ownership and the future of one of the U.S.’s major oil refiners.
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