The court has not been able to reach an agreement with the bondholders and discussions are no longer active, Delaware District Court Special Master Robert Pincus said in a filing. The bonds were secured with a pledge of a controlling interest in another Citgo parent.
U.S. District Court in Delaware is auctioning shares in PDV Holding to repay $21.3 billion in claims against Venezuela and state-oil firm PDVSA for expropriations and debt defaults. The bondholders have been pursuing their claims in separate court actions.
Pincus, who had missed several deadlines to provide the court with the winner and sale terms of the auction, has blamed bondholders’ legal filings for complicating talks with a bidder. Bidder Gold Reserve this month dropped out of the running over delays and uncertainty surrounding the auction. Pincus’ filing said he reserves the right to re-engage with the bondholders in the future.
Reporting by Gary McWilliams – Reuters
This article was originally posted at sweetcrudereports.com
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