Amber Energy, an affiliate of US hedge fund Elliott Investment Management, has officially raised its bid to $8.82bn in the ongoing auction of PDV Holding, the parent company of Citgo Petroleum. The offer, disclosed in a court filing submitted to Delaware authorities, places Amber Energy ahead of competing bidders just days before the court’s final decision.
A process relaunched in January
The sale of PDV Holding, a subsidiary of Venezuelan state oil company Petróleos de Venezuela S.A. (PDVSA), was revived in January following an initial attempt marked by disputes over Citgo’s valuation and concurrent legal proceedings. The court-supervised sale aims to recover unpaid debts linked to Venezuela’s sovereign obligations.
Three major offers in contention
According to documents filed with the Delaware court, a subsidiary of energy trader Vitol submitted a $8.45bn bid, while a consortium led by Gold Reserve Inc. made an offer of $7.4bn. Amber Energy’s revised proposal includes a payment mechanism for holders of defaulted Venezuelan bonds, as detailed in a letter from Red Tree Investments, one of the creditors involved.
Judicial decision expected soon
A Red Tree representative stated in an official filing that, under Delaware law, “Amber Energy is the highest bidder and should be selected as the winner.” The court is expected to hold a hearing in the coming days to decide between the competing offers. Amber Energy has not responded to requests for comment on the transaction.
Both PDV Holding and Citgo Petroleum are listed on the New York Stock Exchange. The Delaware court previously ruled that PDV Holding could be held liable for Venezuela’s sovereign obligations, allowing creditors to pursue the refiner for repayment.
