Source: The Patriot Light | AWK Network | VIEW ORIGINAL POST ==>
By Gary McWilliams and Marianna Parraga
HOUSTON (Reuters) – An auction of shares in a Citgo Petroleum parent to pay claims against Venezuela needs to be overhauled, a court adviser recommended on Tuesday, conceding a year-long sale process was in shambles and needed to start fresh.
U.S. District Court in Delaware is auctioning shares in PDV Holding to repay $21.3 billion in claims against Venezuela and state-oil firm PDVSA for expropriations and debt defaults.
The recommendation in a court filing came after an up to $7.3 billion bid by an affiliate of activist fund Elliott Investment Management failed to win support from creditors. At least two groups had told the court they could present offers if allowed to re-enter the bidding contest.
Court adviser Robert Pincus proposed to re-launch the auction after being admonished by the judge for a lack of an agreement that met terms set more than a year ago. The adviser had granted Elliott exclusive negotiating rights and would have let it defer payments, conditions that creditors said unduly favored Elliott.
Elliott’s wholly owned affiliate, Amber Energy, which in September was named the original auction’s winner but never concluded…
