{"id":6133,"date":"2023-07-22T14:44:00","date_gmt":"2023-07-22T19:44:00","guid":{"rendered":"https:\/\/www.inflation.us\/news\/?p=6133"},"modified":"2026-01-04T01:19:00","modified_gmt":"2026-01-04T06:19:00","slug":"citgo-to-be-auctioned-on-october-23rd","status":"publish","type":"post","link":"https:\/\/www.inflation.us\/news\/articles\/citgo-to-be-auctioned-on-october-23rd\/","title":{"rendered":"Citgo to Be Auctioned on October 23rd"},"content":{"rendered":"\n

Reuters published another brand-new breaking<\/span> news article<\/strong> last night about NIA’s Rusoro Mining (TSXV: RML)<\/strong> and the US$1.76 billion<\/strong><\/span> they are likely to soon collect<\/strong><\/span> from Citgo<\/strong><\/span>:<\/span><\/span><\/p>\n\n

US Court Sets Oct. 23 Start for Citgo Share Auction Process<\/strong>
\nJuly 21, 2023, at 6:13 p.m. EDT<\/span><\/span><\/p>\n\n

By Marianna Parraga and Gary McWilliams<\/span><\/span><\/p>\n\n

HOUSTON (Reuters) -A U.S. court set<\/span> Oct. 23<\/strong> as the start date for a long-expected auction<\/strong><\/span> of shares in Venezuela-owned refiner Citgo Petroleum’s<\/span> parent<\/strong> to pay creditors<\/strong><\/span> with judgments against<\/span><\/strong> the South American nation<\/strong>.<\/span><\/span><\/p>\n\n

The sale process<\/strong> lays out<\/strong><\/span> a schedule<\/strong> that could lead to formal approval<\/strong><\/span> of any sale of shares in PDV Holding<\/strong>, a U.S.-based unit of state company Petróleos de Venezuela<\/strong>, a year from now.<\/span><\/span><\/p>\n\n

U.S. Judge Leonard Stark<\/strong> in Delaware this week accepted a recommendation<\/strong><\/span> by a court official<\/strong> in charge of organizing<\/strong><\/span> the auction<\/strong><\/span>. Proceeds<\/strong> from any sale of PDV Holding shares<\/strong> would be used to pay off<\/span> creditors<\/strong> previously cleared<\/strong><\/span> by the court<\/strong>. PDV Holding’s only asset<\/span><\/strong> is Citgo<\/strong><\/span>.<\/span><\/span><\/p>\n\n

Any sale of Citgo<\/strong><\/span> without the participation of Venezuela<\/strong> would be “hurtful<\/strong><\/span>,” Pedro Tellechea, Venezuela’s oil minister<\/strong>, said on Friday. “It’s not<\/span> a PDVSA asset<\/span>. It’s an asset of all<\/span> Venezuelans,”<\/strong> he said.<\/span><\/span><\/p>\n\n

Horacio Medina, head of the ad-hoc board that since 2019 has overseen the refiner, was not immediately available for comment. A spokesperson for Citgo declined to comment.<\/span><\/span><\/p>\n\n

Stark dismissed<\/span> Venezuela’s attempt to stop<\/span><\/strong> the auction<\/strong><\/span>. Venezuela had argued that the auction’s conditions would not ensure the best value for the assets, and that the process should be delayed until other pending litigation is resolved.<\/span><\/span><\/p>\n\n

“The Venezuela Parties’ objection<\/span> is utterly unpersuasive<\/span>, particularly in light of the lengthy history<\/span> of this case,”<\/strong> he wrote. “There is simply no<\/span> reason to further delay<\/span> starting the sale process<\/span>.”<\/strong><\/span><\/span><\/p>\n\n

The U.S. Treasury Department<\/strong> this month extended for three months through Oct. 19<\/strong> a license protecting Citgo<\/strong><\/span> from holders of a 2020 bond defaulted by PDVSA. The license does not<\/strong><\/span> freeze<\/strong><\/span> the auction<\/strong><\/span>, but would require U.S. approvals for any winners in the process.<\/span><\/span><\/p>\n\n

Following a long wave of expropriations<\/strong><\/span> under late Venezuelan President Hugo Chavez and the default of bonds issued by PDVSA, the creditors flocked to U.S. courts to enforce arbitration awards against the country.<\/span><\/span><\/p>\n\n

The creditors include miner Crystallex International, oil producer ConocoPhillips, Siemens Energy, and Red Tree Investments, which are trying to recoup some $2.7 billion over unpaid court and arbitration rulings.<\/span><\/span><\/p>\n\n

Another group of six companies recently won<\/strong><\/span> at an appeals court<\/strong> their attempt to attach<\/span> claims<\/span><\/strong> to the Delaware case<\/strong>. The companies are O-I Glass Inc, Huntington Ingalls Industries, ACL1 Investments, Rusoro Mining (TSXV: RML)<\/strong>, Gold Reserve and two Koch Industries units, which will try to cash $3.46 billion.<\/span><\/span><\/p>\n\n

(Reporting by Marianna Parraga and Gary McWilliams; Editing by Richard Chang and Grant McCool)<\/span><\/span><\/p>\n\n

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.<\/em><\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Reuters published another brand-new breaking news article last night about NIA’s Rusoro Mining (TSXV: RML) and the US$1.76 billion they are likely to soon collect from Citgo: US Court Sets Oct. 23 Start for Citgo Share Auction Process July 21, 2023, at 6:13 p.m. EDT By Marianna Parraga and Gary McWilliams HOUSTON (Reuters) -A U.S. […]<\/p>\n","protected":false},"author":1,"featured_media":6135,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[26,116],"class_list":["post-6133","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-politics","tag-rml"],"_links":{"self":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/6133","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/comments?post=6133"}],"version-history":[{"count":1,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/6133\/revisions"}],"predecessor-version":[{"id":6136,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/posts\/6133\/revisions\/6136"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media\/6135"}],"wp:attachment":[{"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/media?parent=6133"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/categories?post=6133"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.inflation.us\/news\/wp-json\/wp\/v2\/tags?post=6133"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}