HOUSTON (Reuters) – A U.S federal judge in Delaware on Monday approved new terms to relaunch bidding in a complex auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, set to pay creditors for past defaults and expropriations.
Judge Leonard Stark approved a termination fee equivalent to 3% of the value of attached judgments if a court officer overseeing the process recommends a bid other than the stalking horse bid. An up to $30 million reimbursement of termination expenses was also approved.
The bidding changes seek to encourage higher offers, after a $7.3 billion conditional bid by an affiliate of hedge fund Elliott Investment Management last year was rejected by most creditors.
(Reporting by Marianna Parraga)
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