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A U.S. District Court in Delaware has granted a crucial extension for improved bids in the ongoing auction of shares in PDV Holding (PDVH), the indirect parent company of Venezuela-owned refiner Citgo Petroleum. The deadline for submitting revised offers has been pushed to June 18, 2025, providing prospective buyers more time to refine their proposals amidst escalating interest in the valuable U.S. asset.

The decision, confirmed by a court filing on Friday, follows a motion by the "Venezuela Parties" – Citgo Petroleum, PDVH, PDVSA (Petróleos de Venezuela SA), and the Republic of Venezuela – and was supported by key players including Vitol Inc., Rusoro Mining Ltd., and Gold Reserve Ltd.

Originally set for May 28, the bidding deadline was extended primarily due to the resolution of parallel legal cases that had previously clouded the auction process.

Revised Timeline for a High-Stakes Sale

With the bidding deadline moved to June 18, the updated calendar also sets new benchmarks for the auction's progression. The court officer now has until June 27, 2025, to recommend a winning bid. This recommendation will be followed by a period for objections, with the deadline for filing any challenges set for July 3, 2025. Responses to these objections are due by July 11, and replies by July 16. A joint status report from the Special Master is also expected by July 16, with the discovery period concluding on July 18. The final hearing to discuss the sale process remains scheduled to commence on July 22, 2025.

Key Bidders and Their Strategies

The Citgo auction has attracted a diverse set of bidders, each with unique strategies and challenges. Gold Reserve Ltd., a Canadian mining company, has submitted a substantial $7.1 billion bid, backed by JPMorgan and TD Bank.

Contrarian Capital's Red Tree Investments previously set the stalking-horse bid at approximately $3.7 billion. Vitol Inc., a global energy trading firm, is also a notable participant, with its bid potentially offering a blend of cash and non-cash equity. Rusoro Mining Ltd., another senior creditor, stands to benefit significantly if Gold Reserve's higher bid prevails.

By acquiring shares of Citgo Petroleum, these bidders would gain control of its three US crude oil refineries and its supportive infrastructure, lubricant plants and Citgo’s network of independent gasoline retailers and other channels.

The auction is a complex legal process orchestrated by a U.S. federal court in Delaware to satisfy billions of dollars in claims by numerous creditors against Venezuela and its state oil company, PDVSA, stemming from debt defaults and expropriations.