A displayed money of $ 3.7 billion recommended as the start of an offer at the parents ’auction in CITGO

Written by Mariana Paraja

Houston (Reuters) -The American court officer, under the supervision of a shares in the father of the Cito Petroleum Refinery, recommends a judge chosen a $ 3.7 billion offer by a company affiliated with contradictory funds to lay the floor for a new tour this year, according to the preparation of a court on Friday.

A federal court in Dilayer occupies the shares of an auction at the Citgo PDV auction, which is held to pay up to 21.3 billion dollars to 18 creditors who seek compensation for failure to pay debts and sources in Venezuela.

This time the court decided to set the minimum PDV offer after most companies at auction rejected last year a bid of $ 7.3 billion by an Elleott Investment Management company, which is subject to resolving parallel claims of some creditors.

The field said that four potential bids for “Al -Mazzard” shares in PDV Holding were received by a deadline on March 7.

RED TREE Investments of the Contraranian Funds were recommended by the Master responsible for the auction. Judge Leonard Stark must accept or reject it before the auction continues.

“The proposed transaction from Red Tree has the second highest purchase price, and the private master believes that it has the least conditional,” the file said.

“The private master considers that the combination of value and certainty of the proposed treatment results in the best horse available.”

The Gold Canadian Gold said last week, including Dalinar Energy Corporation and US bloc units, has also made an offer.

Red TREE and another contradictory company who is holders of the backward bonds of the Venezuelan and part of the 18 creditors who seek cash returns from the auction, which means that if the group’s offer wins, they will get their claims.

They are jointly demanding about $ 680 million in addition to interests and fees, according to court documents.

They said that the initial Red Tree offer is low by analysts, bearing in mind that the evaluation of the CITGO market exceeds $ 10 billion, but the localization period that can be followed to make competing bids can increase the final offer.

“This offer will resolve the conflict with the holders of PDVSA bonds for 2020 while collecting $ 1.5 billion to pay other creditors,” said Jose, Ignacio Hernandez of Aurora Macro Strategies Consulting.

“For Red Tree, it is a financial deal, not an operational deal. But Venezuela can object to it, saying it is very low,” he added.