A federal court in Delaware has set October 23 as the start date of an auction to offer shares in one of the parent companies of the Venezuelan-owned refiner Citgo Petroleum to pay creditors who have awards against the South American country.
The auction process, which contemplates a schedule according to which any sale could take place in a period of one year, could define the breakup of the seventh largest oil refiner in the United States.
Judge Leonard Stark in Delaware this week accepted a recommendation from a court-appointed official to set up the auction. Proceeds from any stock sales would be used to pay court-approved creditors.
The list of creditors includes the mining company Crystallex International, the oil producer ConocoPhillips, Siemens Energy and the firm Red Tree Investments, who seek to recover some 2.7 billion dollars recognized by awards and international arbitration courts.
Citgo is under a protection issued by the United States Department of the Treasury that prevents bondholders from taking its assets. The protection expires on October 20.
