HOUSTON (Reuters) -A U.S. federal court on Thursday approved the rescheduling of a long-awaited sale hearing originally planned for next week to decide the final winner of an auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, according to a filing.
The change was approved after two unsolicited bids were recently submitted by affiliates of hedge fund Elliott Investment Management and commodities house Vitol, after a court officer overseeing the auction had recommended a different bid by a unit of miner Gold Reserve.
A new date for the final hearing will be set once the court receives input from officer Robert Pincus, parties in the process and creditors, Delaware Judge Leonard Stark said in his order. The court plans to hold an in-person hearing on Monday to listen to the parties.
An adjournment of the final hearing had been requested by Pincus on Wednesday, supported by several creditors and bidders. Gold Reserve, which wants its subsidiary’s bid confirmed by the judge as the auction’s winner, told the court it opposes any changes in the calendar.
The emerging bids have heated up the competition for Citgo at the last minute, but also have increased disagreements between the parties, complicating the case.
The postponement is expected to add delays to the 8-year court case, first introduced by miner Crystallex against Venezuela, and which has opened the door for more than a dozen additional creditors to seek compensation for debt defaults and expropriations in the South American country.
(Reporting by Marianna Parraga; Editing by Mark Porter)
