Last week, Judge Leonard Stark approved the sale of PDV Holding – Citgo’s parent company – to Amber Energy, a subsidiary of hedge fund Elliott Investment Management, following confirmation of the company’s $5.9 billion bid in a court-organized auction.
Lawyers representing Venezuela, refiner Citgo Petroleum and their parent companies challenged an order by Delaware Judge Leonard Stark authorizing the sale of PDV Holding shares.
According to documents to which the agency Reutersthe applications were presented this Monday, December 1, before the United States Court of Appeals for the Third Circuit.
Last week, Judge Stark approved the sale of PDV Holding – the parent company of Citgo – to Amber Energy, a subsidiary of hedge fund Elliott Investment Management, following confirmation of the company’s $5.9 billion bid in a court-organized auction.
The transaction is pending approval from the U.S. Treasury Department, but Amber Energy has said it expects it to close next year.
“The forced sale process has been characterized by deficiencies and irregularities, including a conflict of interest involving court advisors,” the Venezuelan parties stated in a statement last week. Amber and a judicial official overseeing the auction have denied any wrongdoing.
Venezuela and rival Gold Reserve (GRZ.V) previously filed objections to Amber’s bid and motions to disqualify the judge and advisors the court selected to evaluate the bids, which were denied by Judge Stark.
The sale process seeks to compensate up to 15 creditors for debt defaults and asset expropriations in Venezuela. If the transaction goes through, companies such as miners Crystallex and Rusoro or oil producer ConocoPhillips are expected to recover billions of dollars in auction profits.
With information from Reuters
*Journalism in Venezuela is carried out in a hostile environment for the press with dozens of legal instruments in place to punish the word, especially the laws “against hate”, “against fascism” and “against the blockade.” This content was written taking into consideration the threats and limits that, consequently, have been imposed on the dissemination of information from within the country.
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