The judge instructed Pincus prioritizing price above closing certainty in his final recommendation.
Courtesy | This offer, recommended by a judicial officer who supervises the auction, unleashed a dispute between the 16 creditors
A Federal Judge of the United States confirmed, on Monday, April 21, an initial offer of US $ 3.7 billion presented by the company Red Tree Investments, a subsidiary of Counter Funds, in an auction of shares of the matrix of the Venezuelan refiner Citgo Petroleum to pay creditors and bond holders, according to a court document.
This offer, recommended by a judicial officer who supervises the auction, unleashed a dispute between the 16 creditors seeking to be compensated with the income of the auction. Some supported it because it includes a payment agreement with the holders of a bond issued by the Citgo matrix, Petróleos de Venezuela SA (PDVSA), while others considered it too low.
A consortium led by the Minera Gold Reserve, which had presented an offer of US $ 7.1 billion, other creditors and lawyers representing Venezuela in the case, which has been discussed for 8 years in a court in Delaware, presented objections to the supply of Tree network, which were dismissed by Judge Leonard Stark.
“The Network offer constitutes the best balance between the evaluation criteria, which can be summarized in closing price and certainty,” Stark said in his decision, adding that the offer should foster competition.
-The judge asked the judicial officer Robert Pincus to propose a deadline to receive rival offers to that of the TREE Network, which is expected to lead to the selection of the winning offer of the auction, whose final hearing is scheduled for July.
The judge instructed Pincus prioritizing price above closing certainty in his final recommendation.
In a previous bidding round in 2024, most creditors rejected the offer of US $ 7.3 billion made by a subsidiary of the Elliott Investment Management Investment Fund.
It is expected that this time the choice of the TREE Network proposal as an initial offer incentives new payment proposals of up to US $ 3,000 million to the holders of the 2020 PDVSA bonds, guaranteed with Citgo shares, indicates a note from the Reuters Agency.
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