A bid of $5.89 billion from Amber Energy—an affiliate of hedge fund Elliott Investment Management—has been officially recommended by court officer Robert Pincus as the winning proposal in a U.S. court-organized auction for shares in PDV Holding, the parent company of Venezuela-owned refiner Citgo Petroleum. The move comes despite a last-minute higher bid from Dalinar Energy, a subsidiary of Gold Reserve.
Earlier this month, Dalinar Energy had offered $7.4 billion, briefly emerging as the frontrunner. However, Pincus later deemed Amber’s improved proposal superior and granted Gold Reserve three additional business days to match or exceed the offer, which they ultimately failed to do.
Amber’s bid was favored because it not only promised $5.86 billion to creditors but also included a $2.13 billion cash settlement for over 75% of bondholders holding a defaulted Venezuelan bond backed by Citgo equity. Additionally, the offer proposes $500 million in partial compensation to Gold Reserve, though that has not been accepted.
The auction serves to address nearly $19 billion in claims filed by 15 creditors since Venezuela’s 2017 expropriations and debt defaults. Amber’s proposal fully covers nine claimants, compared to the 12 that Dalinar’s bid targeted—highlighting a contrast in both structure and creditor reach.
The outcome is now under legal challenge. Gold Reserve, along with creditors Siemens Energy, Consorcio Andino, and Valores Mundiales, has filed motions to disqualify Amber’s bid, questioning the integrity of the bidding process and alleging procedural violations.
Delaware Judge Leonard Stark is expected to preside over a hearing next month, after which he will issue a final ruling on the winning bid. Pincus has left open the possibility of revisiting his recommendation should any intervening events warrant it.
This tense auction underscores the complexity of resolving sovereign-related claims in court—balancing maximized creditor repayment, legal certainty, and swift resolution. Amber’s structured offer prioritizes definitive payouts and bondholder inclusion, while Gold Reserve’s higher nominal bid lacked those critical components.
With the final decision pending, the Citgo auction marks a pivotal moment in how U.S. courts manage high-stakes asset sales tied to geopolitical disputes—where procedural rigor and financial structure can be as decisive as bid size in resolving long-standing creditor claims.
