[ad_1]
By Marianna Parraga and Gary McWilliams
HOUSTON (Reuters) – A U.S. judge may soon rule on a final auction schedule that could force the liquidation of Venezuela-owned Citgo Petroleum, the seventh-largest U.S. refinery by capacity, according to a lawsuit filed by Reuters. court
U.S. District Judge Leonard P. Stark last year approved the sale of shares in Citgo’s parent company to pay Canadian miner Crystallex $970 million owed in a decision to expropriate assets in Venezuela. Venezuela’s offshore assets
The US Treasury Department’s Office of Foreign Assets Control (OFAC) has blocked any transfer of ownership or control. in Venezuela property in the United States And it’s unclear whether the auction will continue with acceptance.
The judge stated that he would give up to six months for the specialties overseeing the sale of shares to obtain OFAC’s consent. Masters can offer to move forward without OFAC’s approval, but the uncertainty may discourage some investors. can consider the auction
The marketing and sales process offered by the judges made it possible to bid on horse stalking. This is the default bid for the asset that acts as an effective reserve bid. and for the sale of some or all of Citgo’s parent shares. The number of shares sold will be enough to cover the $970 million judgment.
Citgo Petroleum was valued at about $10 billion in 2014.
Many companies are in debt after a wave of expropriation and naturalization under the late and circulating president Hugo Chavez, Venezuela’s most valuable foreign asset.
On Friday, Koch Minerals and Koch Nitrogen jointly asked Stark to order the seizure of parent company Citgo in response to a $387 million verdict against Venezuela. Miner Gold Reserve Inc registered a $713 million award with the court today. last wednesday By signaling that it hopes to return the profits in the Crystallex auction.
Venezuela Bondholders and Lawyers 2020 for ConocoPhillips which has a $1.2 billion judgment against Venezuela were included in court hearings regarding the sales process.
Stark has six revised proposals to create a sales and bidding process. No orders posted on Friday. The lawyer involved in the matter said anyone could come at any time.
On September 29, Stark said: “The court is expected to sign the revised proposed procedural order on October 7 or so.”
if approved The calendar may see an official auction due in seven months and a court ruling to accept a high bid within nine months after the court date. according to the court’s complaint The entire process includes marketing, auctions and notifications to parties.
Stark previously approved the hiring of investment bank Evercore Group to run the auction.
Spokesmen for Citgo and Crystallex had no immediate comment. Conoco declined to comment.
(Reporting by Marianna Parraga and Gary McWilliams; Editing by Marguerita Choy and Ana Nicolaci da Costa)
[ad_2]
Source link