An American federal judge delayed the deadline for submission on the actions of Citgo Petroleum, a former subsidiary of oil activity belonging to the State of Venezuela, of almost two weeks.
According to a court file on Tuesday, the new date of cut for competing offers was moved at least until June 2. The decision comes as legal battles rise and could change the way the creditors are paid in this area.
A Delaware court supervised an auction ordered by the court to settle complaints with 15 creditors on unpaid debts and nationalists in Venezuela.
However, these emerging details are closely examined, given the impact that the process will have on one of the largest American assets associated with the South American country assaulted by economic disorders.
The offer of $ 3.7 billion from Red Tree costs the floor
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In April, Delaware District Judge Leonard Stark granted an offer of hunting horses of 3.7 billion dollars made by Red Tree Investments, a branch of fundraising. This offer determines the minimum price that other parties must exceed to win the auction.
Previously, potential bidders were to submit proposals by May 28.
However, Venezuela’s legal officials asked for an extension, invoking the need for more time to examine the potential repercussions of other judicial cases currently pending in the United States.
These simultaneous cases can influence the evaluation or terms of the sale of CitGO’s parents, which raises concerns among stakeholders.
Legal developments cause a change in the calendar
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The request for extension has been characterized as an answer required to “monumental development” in the legal environment.
According to a request filed by the lawyers of Venezuela, the recent judicial decisions helped to clarify what the special master appointed by the court described earlier as a “cloud of uncertainty” surrounding the sale.
Such development occurred last week, when a New York judge rejected the arguments of a group of creditors for part of the same assets in the Delaware case.
According to the Venezuela legal team, the extension would give tenderers an appropriate time to adapt their offers in response to what they called these changing legal circumstances.
Some of the creditors also supported the extension of the queries subject to the Court, recognizing the need to clarify before finalizing their offers.
Following steps: The final hearing is still scheduled for July
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Despite the delay in the deadline for tender, the overall period to complete the auction remains unchanged.
According to a proposed calendar supported by some of the creditors concerned, the last audience to determine the winning offer is still scheduled for July.
The special master appointed by the court, who is in charge of the auction process, should examine the offers and recommend a winning offer next month.
The duty of the special master includes the guarantee that the procedure is transparent and legal, which is particularly important by considering the situation of politically and diplomaticly sensitive ownership of CITGO.
The refinery, based in the United States, is one of the most precious assets in Venezuela and has been the subject of many disputes in the American courts.
