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Citgo share bidders can be asked how accommodate bondholder claims, judge rules
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Citgo share bidders can be asked how accommodate bondholder claims, judge rules
May 17, 2024 8:27 AM

May 17 (Reuters) - Bidders in a U.S. court auction of

shares that will decide the ownership of oil refiner Citgo

Petroleum can be required to say if their binding

offers cover claims by Venezuela bondholders in a separate court

action, a U.S. District Court judge ruled on Friday.

The decision lets bidders seeking to place multi-billion

dollar offers for a Citgo parent's shares to be asked if they

plan to set aside cash or if their bids will accommodate

Venezuela 2020 note holders seeking payment of $3 billion in

principal debt.

The ruling by US Judge Leonard Stark came after Venezuela

objected to a court officer's revised bidding instructions that

Venezuela and some creditors called unclear. Stark rejected the

motion to delay the auction, saying the court officer could make

changes to maximize the value of bids received.

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