September 02, 2025 [Offshore Technology]- Amber Energy, an affiliate of Elliott Investment Management, has been recommended as the preferred bidder with a $5.89bn offer in the US court-organised auction of shares in Citgo Petroleum’s parent company.
The officer overseeing the sale filed the recommendation late on Friday, reported Reuters.
In the final stages of the auction, improved bids were submitted, driven by court rulings in related legal cases that prompted bid revisions.
Delaware judge Leonard Stark is expected to make a final ruling after a court hearing next month.
Despite a last-ditch attempt by Gold Reserve’s subsidiary to enhance its $7.4bn bid, previously seen as the leading offer, court officer Robert Pincus favoured the bid from Elliott’s affiliate.
The court had allowed three days for Gold Reserve to match the improved offer from Amber Energy.
On Friday, Pincus stated that Dalinar Energy’s proposal from the Gold Reserve group “did not match or exceed the Amber sale transaction, and therefore, the Amber sale transaction continues to constitute a superior proposal”.
However, he indicated that the court might be asked to reconsider his recommendation if new events occur.
The auction aims to settle claims from 15 creditors seeking to recover nearly $19bn since 2017, following Venezuela’s expropriation of assets and default on debt.
Amber’s bid promises full compensation for nine claimants, while the Gold Reserve group had offered to cover 12.
Furthermore, Amber’s bid includes a separate deal to pay $2.13bn in cash to settle claims from more than 75% of the holders of a defaulted Venezuelan bond secured by Citgo equity.
Amber has also proposed a partial $500m compensation to Gold Reserve, which is seeking auction proceeds for the expropriation of its mining assets in Venezuela.
Gold Reserve has not accepted this partial offer.
This week, Gold Reserve and other creditors including Siemens Energy, Consorcio Andino and Valores Mundiales filed motions to disqualify Amber’s bid, arguing that Pincus’ assessment of its superiority “discarded the bidding procedures”. These motions are currently under review.
