The $ 3.7 billion counter -offs offer is recommended as an initial offer at the auction of the Citgo parent auction

Marianna Parraga

Houston (Reuters) -a US Court Service Obtaining Acting in the Parent of the Venezuele Citgo Petroleum refinery is recommended to the judge to select an offer of $ 3.7 billion by associated funds to fight the opposite funds to set up a new circle of competition this year, said on Friday.

The Federal Court in Delaware sells shares in Citgo’s PMV parent of VAT who will pay up to $ 21.3 billion to 18 creditors seeking debt non -payment fee and expropriation in Venezuela.

This time, the court decided to set a minimum offer for VAT share after most of the auction companies rejected the $ 7.3 billion on the associated Hedge Fund Management Society, which was susceptible to resolving parallel lawsuits launched by some of the same creditors.

Four potential offers of “Stalking Horse” for Stocks in Holding VAT were received by March 7th, according to the application submitted.

The offer of associated investment funds in the Red Investments was recommended by a special master in charge of auction. Judge Leonard Stark must accept or refuse him before the auction moves on.

“The proposed Red Tree TREE transaction has the second highest purchase price, and the special master believes it has the least conditioning,” the application is submitted.

“A special master believes that a combination of value and safety of the proposed transaction results in the best available horse.”

Canadian Miner Gold Reserve said last week that a consortium, including his subsidiary Dalinar Energy Corporation and Units of the US Congograta Koch.

The red wood and another Contrariar’s subsidiary are owners of Venecuela’s unpaid bonds and a part of 18 creditors who want to cash in revenue from the auction, which means that if the group’s supply offer will receive their demands.

Together, they are looking for about $ 680 million plus interest and fees, according to court documents.

Analysts considered analysts low, considering that CITGO’s market estimate exceeds $ 10 billion, but a premium departure period to monitor rival offers that should be submitted could increase the final offer, they said.

“This offer would solve the dispute with VAT owners in 2020, collecting $ 1.5 billion to pay for other creditors,” said Jose Ignaio Hernandez of the Macro Aurora Counseling Strategy.

“For the order, this is a financial, not an operational contract. But Venezuela could object, saying it was too low,” he added.