Key facts
- The US Court of Appeals in Philadelphia heard arguments on Wednesday regarding the disputed auction of Citgo Petroleum's parent company.
- A federal judge in Delaware approved a $5.9 billion bid from an affiliate of Elliott Investment Management in November.
- Opponents argue the sale process was flawed, citing conflicts of interest and lower-than-market valuations.
- The sale awaits approval from the US Treasury Department.
- An April deadline looms for Elliott's Amber Energy to preserve its offer.
A US Court of Appeals in Philadelphia heard arguments on Wednesday concerning the protracted auction of PDV Holding, the parent company of Venezuelan-owned refiner Citgo Petroleum. The proceedings stem from a 2017 lawsuit initiated by miner Crystallex International, which has allowed other creditors to pursue Citgo's parent for compensation. In November, a federal judge in Delaware approved a $5.9 billion bid from an affiliate of Elliott Investment Management to satisfy certain Venezuela-linked creditors, a decision that has drawn significant opposition. Venezuela, along with some creditors and rival bidders, contends that the auction process was flawed, citing alleged conflicts of interest involving court-appointed advisors, procedural errors that excluded higher bids, and a valuation they deem too low. The sale has not yet been finalized and awaits approval from the US Treasury Department. An April deadline looms for Elliott's Amber Energy to maintain its offer.