By Marianna Parraga
HOUSTON (Reuters) -A $5.89 billion bid from an affiliate of hedge fund Elliott Investment Management has been recommended as the winner of a U.S. court-organized auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, according to documents filed late Friday by the officer overseeing the sale process.
The recommendation from court officer Robert Pincus came despite a last minute effort from a Gold Reserve subsidiary earlier this week to sweeten its $7.4 billion offer.
Earlier this month, Pincus said an improved bid from Elliott’s affiliate Amber Energy was superior and the court gave three days to the Gold Reserve group to match it.
Pincus said on Friday that the transaction proposed by Gold Reserve’s Dalinar Energy “did not match or exceed the Amber sale transaction, and therefore, the Amber sale transaction continues to constitute a superior proposal.”
The auction’s proceeds are expected to compensate at least a handful of 15 creditors that have been fighting since 2017 to recover nearly $19 billion in U.S. courts after Venezuela expropriated assets and defaulted on debt.
(Reporting by Marianna Parraga; Edited by Julia Symmes-Cobb)
