Elliott Investment Management has urged a court to support its Citgo bid, emphasizing that the Venezuela-owned oil refiner's assets are "deteriorating in value." The hedge fund argues that creditors will not find a better alternative.
In recent comments, creditors labeled Elliott's up to $7.3 billion conditional Citgo bid as insufficient. They expressed concerns that the court may reject the proposal, complicating the situation further.
Elliott’s subsidiary, Amber Energy, has warned it might withdraw its Citgo bid if the court fails to address crucial issues. They intend to set aside over $2 billion of their offer to protect against potential claims from Venezuela bondholders.
Citgo runs three refineries and 38 terminals in the U.S., providing fuel to 4,200 independent retailers. The company plays a central role in an ongoing auction in Delaware, seeking to resolve $21 billion in claims against Venezuela.
Amber Energy has secured a debt commitment letter from Barclays and Citibank, showcasing its ability to finance the Citgo bid. The firm has also assembled a team of experts ready to manage Citgo’s operations.
The court filing did not address all creditor concerns, such as a potential breakup fee if the deal collapses. Creditors are also wary about other bidders gaining access to Citgo’s financial data before the court decides on the fee.
Despite ongoing challenges, Amber maintains that its Citgo bid offers the "best and only realistic pathway" for creditors to receive compensation, even as uncertainties about auction proceeds linger.
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Elliott Investment Management defends its Citgo bid, arguing that the oil refiner's assets are deteriorating and its offer is the best option
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