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Siemens files lawsuit in Texas against Citgo Petroleum parent
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Siemens files lawsuit in Texas against Citgo Petroleum parent
Oct 10, 2024 10:14 PM

HOUSTON, Oct 9 (Reuters) - Siemens Energy Inc

has filed a lawsuit in a Texas court against Citgo Petroleum's

parent, PDV Holding, seeking to recoup about $200 million from a

promissory note defaulted by Venezuela, according to a court

document seen on Wednesday.

Creditors that are part of an auction of Citgo parent's

shares in a Delaware court to pay billions of dollars for

expropriations and debt defaults in Venezuela have begun turning

to other U.S. courts to enforce their claims, a strategy to gain

priority when the auction's proceeds are paid.

The auction's second bidding round was completed last month

with the selection of an affiliate of Elliott Investment

Management as the winner. If the judge ratifies the $7.3 billion

offer, there might not be enough money to pay more than a

handful of the $21 billion in creditor claims before the court.

Citgo and PDV Holding are U.S. subsidiaries of

Caracas-headquartered state oil firm PDVSA. The

dispute between PDVSA and Siemens comes from a transaction under

which engineering firm Dresser-Rand Company, acquired by Siemens

Energy, was entitled to receive some $166 million pursuant to a

promissory note.

"SEI obtained a judgment against PDVSA from the Southern

District of New York and now seeks to hold PDV Holding liable as

PDVSA's alter ego for the full amount of the judgment, which now

exceeds $200 million," the document filed by Siemens said.

Gramercy Distressed Opportunity Fund and two related

companies have filed similar lawsuits in Texas and New York

courts this year, threatening to derail the auction in Delaware,

which is scheduled to be completed in the coming months.

A court officer appointed to oversee the auction has

requested U.S. Judge Leonard Stark block the creditors from

resorting to other courts to pursue the same assets. His

decision is pending.

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