Venezuela appeals the sale of Citgo parent by US court

In court filings made on Monday, Venezuelan lawyers said they had filed an appeal before the U.S. Court of Appeals, Third Circuit, challenging a judge's order from last week that authorized the sale of PDV Holding shares. Delaware Judge Leonard Stark approved last week the sale of Citgo Holding, the parent company of Citgo, to an affiliate hedge fund Elliott Investment Management after the confirmation of its $5.9 billion bid at a court-organized bidding process.

The U.S. Treasury Department has yet to approve the transaction, but Elliott affiliate Amber Energy expects that it will close by next year.

In a press release issued last week, the Venezuelan parties stated that the forced sale process was marked by irregularities and deficiencies. This included a conflict involving court advisers. Amber and the court officer who was overseeing this auction denied all wrongdoing.

Venezuela and Gold Reserve, a rival bidder, had filed previous objections to Amber’s bid. Judge Stark also denied motions for disqualification of the judge and the advisors selected by the court to evaluate the bids.

The process of selling assets in Venezuela is intended to compensate 15 or more creditors who have been affected by debt defaults. The auction proceeds will be used to compensate companies such as Crystallex, Rusoro, and oil producer ConocoPhillips if the deal is successful.

(source: Reuters)