Third Circuit weighs $5.9 billion Citgo parent sale as Elliott bid faces April deadline

A U.S. appeals court in Philadelphia heard arguments Wednesday over the court-organized auction of Citgo Petroleum's parent company, with opponents seeking to vacate a $5.9 billion sale to an affiliate of Elliott Investment Management. A Delaware federal judge approved the bid for PDV Holding last November to compensate Venezuela-linked creditors, but the sale remains unexecuted pending U.S. Treasury approval. Elliott's Amber Energy must preserve its offer by an April deadline. Venezuela, PDVSA and creditors including Gold Reserve asked the Third Circuit in January to void the order, alleging a conflict of interest involving a court-retained law firm with ties to Elliott units, procedural errors that excluded higher bids, and asset undervaluation. The selected price sits roughly $7 billion below an Evercore valuation and $12 billion under a Venezuela expert's figure. The case stems from a 2017 suit by miner Crystallex over expropriated assets. Citgo projects 2026 EBITDA of about $5.8 billion and year-end cash of approximately $5.7 billion.