The court auction for shares in PDV Holding, parent company of Citgo Petroleum, has hit a roadblock as creditors challenge a $7.3 billion bid from Amber Energy, an affiliate of Elliott Investment Management. The auction, aimed at resolving Venezuela’s $21.3 billion debt obligations, has seen criticism over the bid’s perceived inadequacy. Creditors are now lobbying for the court to terminate Amber’s exclusivity rights, potentially paving the way for fresh bids.  

Federal Judge Leonard Stark, overseeing the Delaware case, has scheduled a hearing for December 13 to discuss the auction’s future. Creditors have urged him to reopen access to Citgo’s financial documents for potential bidders and to end Amber’s exclusive negotiating period. Companies like Canadian miner Gold Reserve and representatives of Venezuela have signaled interest in submitting new offers if these restrictions are lifted.  

Amber’s bid has faced backlash for valuing Citgo below industry standards and including payment structures that critics argue unfairly distribute proceeds. Several creditors, including Gold Reserve and Tidewater, contend that the proposal is “non-viable” and fails to guarantee timely payouts, especially for lower-ranked creditors. Amber has countered by revising its bid, but concerns about its lack of transparency persist.  

Gold Reserve has indicated that its previous bids were superior to Amber’s in every respect and could be finalized quickly if allowed to proceed. Meanwhile, some analysts suggest that dissatisfaction with Amber’s offer could lead the court to explore alternatives, such as a restructuring plan that preserves Citgo as a whole and ensures higher payouts for creditors over time.  

The case, initiated in 2017, stems from Crystallex’s successful bid to hold PDV Holding accountable for Venezuela’s debts. As the December hearing approaches, all eyes are on Judge Stark to decide whether to open the auction to new bids or allow Amber’s proposal to move forward.