Latest news with #CitgoPetroleum
Yahoo
30-05-2025
- Business
- Yahoo
US court extends deadline for improved bids in Citgo parent's auction
HOUSTON (Reuters) - A Delaware judge has extended a deadline to submit improved bids in a court-organized auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum to June 18, a filing showed on Friday, giving more time for bidders to participate. Companies taking part in the bidding round originally had until May 28 to submit offers, but the resolution of parallel legal cases in pursuit of the same assets has prompted interest in the auction, a court officer supervising the sales process said, without identifying the potential new bidders. The court officer now has until June 27 to recommend a winner, according to an updated calendar released by the court. A final hearing to discuss the process remains scheduled for July. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
National Post
27-05-2025
- Business
- National Post
Delaware Court Extends Topping Period for Citgo Sale Process to at Least June 2, 2025
Article content PEMBROKE, Bermuda — Gold Reserve Ltd. (TSX.V: GRZ) (OTCQX: GDRZF) (' Gold Reserve ' or the ' Company ') announces that today the U.S. District Court for the District of Delaware (the ' Court ') issued an order that extended the Topping Period for submitting bids for the purchase of the shares of PDVH, the indirect holding company of Citgo Petroleum, from May 28, 2025, until at least June 2, 2025. The order was issued in response to a motion by the Venezuela Parties (Citgo Petroleum, PDVH, PDVSA and the Republic of Venezuela) to extend the Topping Period for at least twenty-one days, which motion subsequently was supported by Vitol, Inc., Rusoro Mining Ltd. and the Company. Article content Article content The Court will decide whether to further extend the Topping Period beyond June 2, 2025, after reviewing further briefing from the Special Master and other parties due today and tomorrow (May 28, 2025). Article content A copy of the order issued by the Court can be found here. Article content A complete description of the Delaware sale proceedings can be found on the Public Access to Court Electronic Records system in Crystallex International Corporation v. Bolivarian Republic of Venezuela, 1:17-mc-00151-LPS (D. Del.) and its related proceedings. Article content This release contains 'forward-looking statements' within the meaning of applicable U.S. federal securities laws and 'forward-looking information' within the meaning of applicable Canadian provincial and territorial securities laws and state Gold Reserve's and its management's intentions, hopes, beliefs, expectations or predictions for the future. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies. They are frequently characterized by words such as 'anticipates', 'plan', 'continue', 'expect', 'project', 'intend', 'believe', 'anticipate', 'estimate', 'may', 'will', 'potential', 'proposed', 'positioned' and other similar words, or statements that certain events or conditions 'may' or 'will' occur. Forward-looking statements contained in this press release include, but are not limited to, statements relating to the Bid. Article content We caution that such forward-looking statements involve known and unknown risks, uncertainties and other risks that may cause the actual events, outcomes or results of Gold Reserve to be materially different from our estimated outcomes, results, performance, or achievements expressed or implied by those forward-looking statements, including but not limited to: the discretion of the Special Master to consider the Bid, to enter into any discussions or negotiation with respect thereto and that the Special Master may reject the Bid at any time; the Special Master may choose not to recommend a Base Bid or Final Bid to the Court; the failure of the Company to negotiate the Bid, including as a result of failing to obtain sufficient equity and/or debt financing; that Bid submitted by the Company will not be selected as the 'Base Bid' or the 'Final Recommend Bid' under the Bidding Procedures, and if selected may not close due to the Sale Process not being completed, including as a result of not obtaining necessary regulatory approval to close on the purchase of the PDVH shares, including but not limited to any necessary approvals from the U.S. Office of Foreign Asset Control (' OFAC '), the U.S. Committee on Foreign Investment in the United States, the U.S. Federal Trade Commission or the TSX Venture Exchange; failure of the Company or any other party to obtain any required shareholders approvals for, or satisfy other conditions to effect, any transaction resulting from the Bid; that the Company forfeit any cash amount deposit made due to failing to complete the Bid or otherwise; that the making of the Bid or any transaction resulting therefrom may involve unexpected costs, liabilities or delays; that, prior to or as a result of the completion of any transaction contemplated by the Bid, the business of the Company may experience significant disruptions due to transaction related uncertainty, industry conditions, tariff wars or other factors; the ability to enforce the writ of attachment granted to the Company; the timing set for various reports and/or other matters with respect to the Sale Process may not be met; the ability of the Company to otherwise participate in the Sale Process (and related costs associated therewith; the amount, if any, of proceeds associated with the Sale Process; the competing claims of other creditors of Venezuela, PDVSA and the Company, including any interest on such creditors' judgements and any priority afforded thereto; uncertainties with respect to possible settlements between Venezuela and other creditors and the impact of any such settlements on the amount of funds that may be available under the Sale Process; and the proceeds from the Sale Process may not be sufficient to satisfy the amounts outstanding under the Company's September 2014 arbitral award and/or corresponding November 15, 2015 U.S. judgement in full; and the ramifications of bankruptcy with respect to the Sale Process and/or the Company's claims, including as a result of the priority of other claims. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. For a more detailed discussion of the risk factors affecting the Company's business, see the Company's Management's Discussion & Analysis for the year ended December 31, 2024, and other reports that have been filed on SEDAR+ and are available under the Company's profile at Article content Investors are cautioned not to put undue reliance on forward-looking statements. All subsequent written and oral forward-looking statements attributable to Gold Reserve or persons acting on its behalf are expressly qualified in their entirety by this notice. Gold Reserve disclaims any intent or obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of assumptions or factors, whether as a result of new information, future events or otherwise, subject to its disclosure obligations under applicable rules promulgated by the Securities and Exchange Commission and applicable Canadian provincial and territorial securities laws. Article content Article content Article content Article content Article content Article content
Yahoo
27-05-2025
- Business
- Yahoo
US judge extends topping period in Citgo parent's auction until June 2
HOUSTON (Reuters) -A U.S. federal judge has extended to at least June 2 a period for bidders to submit rival bids in a court-organized auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, according to filing released by the Delaware court on Tuesday.
Yahoo
21-05-2025
- Business
- Yahoo
List of bidders in Citgo auction narrows, remaining groups to sweeten terms
By Marianna Parraga HOUSTON (Reuters) -Groups led by affiliates of Contrarian Funds, Gold Reserve and Vitol are working on improved offers for the parent of Venezuela-owned refiner Citgo Petroleum as the list of potential bidders narrows, sources close to the preparations said. The three consortia, which participated in an earlier competition for setting a starting bid, have been in talks with banks to secure the financing needed for their offers in the court-organized auction of shares. They are also working to provide assurance they can deliver the proposed terms to complete the deal, known as "certainty of closure," the sources said. A fourth bidder in the starting round in March, an affiliate of Elliott Investment Management, is not expected to submit an offer in this phase of competition, a source familiar with the decision said, citing legal risks. The Delaware court has been trying to auction Venezuela's most prized overseas asset since 2017 to pay up to $20.6 billion to 16 creditors for debt defaults and expropriations in the South American country. The government of President Nicolas Maduro has said the process constitutes the "robbery" of a sovereign asset. Houston-based Citgo, ultimately owned by Venezuela's state oil company PDVSA, is the seventh-largest U.S. refiner. A $3.7-billion offer by Contrarian Funds' Red Tree Investments was approved by Delaware Judge Leonard Stark in April as a starting bid. The investment firm and its rivals have until May 28 to submit improved offers. Following a June 11 deadline for a court officer to select a winner, a final hearing in the auction of shares in PDV Holding, one of Citgo Petroleum's parents, is scheduled for July 22. The consortia still have time to tune up offers or decide against bidding. A ruling earlier this week by a New York court dismissing arguments by some companies that could have allowed them to jump the line of creditors established in Delaware could lead to changes in some bids, the sources said. FIERCE COMPETITION Robert Pincus, the court officer appointed by Stark to oversee the auction, last year selected a $7.3-billion offer by Elliott affiliate Amber Energy as the winner of the first bidding round. But most creditors registered in the auction ultimately rejected the proposal due to conditions preventing the distribution of proceeds. Pincus, who is being advised by investment bank Evercore, this time selected Red Tree's lower offer to kick off the bidding round due to what he described as its higher certainty of closure, and as a mechanism to encourage "robust competition." The bid includes a separate $3 billion to settle liabilities, mostly payments to Venezuela-linked bondholders, and up to $1.5 billion in notes to pay junior creditors, depending on Citgo's performance. Red Tree for the first time reached a payment agreement with holders of a defaulted Venezuelan bond collateralized with Citgo equity, which would remove a key obstacle to distributing proceeds from the auction to other creditors. The selection of Red Tree's bid as a starting offer unleashed a new battle among creditors, with some at the top of a priority list to cash proceeds supporting it because they would secure payments. Others further down the list said it was too low, with some arguing that a rival $7.1-billion offer by Gold Reserve's consortium should have been chosen. Though Stark has directed that price should be prioritized over certainty of closure when the court officer recommends a winner next month, Red Tree's agreement with the bondholders has prompted others to seek similar deals, the sources said. To bolster their ability to close a deal, the consortia have retained banks to structure and improve their financing. Red Tree is trying to improve all aspects of its starting bid, a source close to its preparations said, while other consortia are working to boost their financing or coverage of junior creditors. The firm is "confident in the bid's price and certainty of closing," the person said of Red Tree's offer. Gold Reserve, Vitol, Amber Energy, Red Tree and a firm representing holders of the Venezuelan 2020 bond declined to comment. Citgo and boards supervising the refiner did not reply to requests for comment. BAD TIMING? Citgo lost $82 million in the first quarter due to weak margins, marking its second consecutive loss. Its liquidity, a key metric for bidders, fell to $2.1 billion at the end of March from $3.8 billion in December. The company's net profit plummeted to $305 million in 2024 from about $2 billion the previous year. The refiner's recent performance and separate lawsuits in U.S. courts in pursuit of the same assets could limit the size of the bids, analysts have said. Lawyers representing Venezuela are fighting in Delaware for a floor price to be set, so Citgo's assets are not auctioned for a fraction of their value, which court advisers calculated at $11 billion to $13 billion. The process's complexity is also expected to make it difficult for Pincus to set clear evaluation criteria acceptable to the judge and most creditors, which could lead to new battles and delays. The auction's winner must be approved by the U.S. Treasury Department, which has protected Citgo from creditors in recent years.
Yahoo
08-05-2025
- Business
- Yahoo
Citgo posts $82 million loss in Q1 amid weak margins
By Marianna Parraga HOUSTON (Reuters) - Venezuela-owned refiner Citgo Petroleum registered an $82 million net loss in the first quarter, compared with a net income of $410 million in the same period last year, amid weak refining margins, the Houston-based company said on Thursday. Citgo, whose assets are being pursued by expropriated companies and bondholders defaulted by Venezuela through a U.S. court-organized auction, registered red numbers again in its latest period, following a $146 million loss in the fourth quarter. "Despite the unfavorable pricing environment, we continued to focus on operational excellence and set a historic quarterly crude processing rate at the Lake Charles refinery," said CEO Carlos Jorda in a release. Average throughput of the seventh largest U.S. oil refiner in the first quarter was 833,000 barrels per day (bpd), of which crude runs were 768,000 bpd for an overall crude utilization of 95%, below the 98% registered in the previous quarter. Utilization at the Lake Charles, Louisiana, refinery rose to 99%, but fell at the Corpus Christi, Texas, refinery to 83% from 96% in the previous quarter as the facility underwent planned maintenance work. The company's profit plummeted to $305 million last year, below the $2 billion profit of 2023, which has changed expectations from some creditors and investors about how much can be recovered from the auction in Delaware. Following a failed bidding round last year, the court launched a new bidding round by choosing a $3.7 billion starting bid last month. A final sale hearing is scheduled for July after rival bids are received and a winner selected in coming months. In the first quarter, Citgo's volume of marketing sales declined slightly to 423,000 bpd, the company said. Citgo reported equipment and turnaround expenditures of $35 million between January and March. Its quarter-end liquidity - an important metric for the auction - declined to $2.1 billion from $3.8 billion at the end of the fourth quarter.
