PDVSA Says Citgo Bidding Process ‘Improperly’ Favors Bondholders

  • Company is objecting to changes in the bidding instructions
  • Potential buyers required to address claims on PDVSA 2020 bond
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Venezuela’s state-owned oil company is objecting to the bidding process for the court-ordered sale in July of a unit, PDV Holding, that owns the US-based refiner Citgo Petroleum.

Lawyers for Petroleos de Venezuela SA argued in a Delaware court filing Wednesday that a special master’s proposed instructions for taking bids next month “improperly advantage” investors who hold a defaulted PDVSA 2020 bond that is backed by a controlling stake in a subsidiary of PDV Holding, which owns the refiner.