Including interest and fees, class action claims by companies such as Crystallex International, ConocoPhillips, Tenaris and Exxon Mobil could exceed the market value of Citgo, the Venezuelan-owned US refinery that has recently been estimated at between $10 billion and $13 billion.
After the auction order of a Citgo Petroleum oil refinery issued by a United States federal court, negotiators and representatives of the Government of Venezuela opposed the measure, which would be to pay creditors who claim more than 10 billion dollars for expropriations and non-payment of debt acquired by the Government.
According to the Reuters news agency, about twenty creditors with arbitration awards or lawsuits against Venezuela and its state oil company PDVSA have asked a federal court in Delaware to register their cases in order to participate in the auction scheduled for October.
Including interest and fees, the class claims from companies such as Crystallex International, ConocoPhillips, Tenaris and Exxon Mobil could exceed the market value of Citgo, the Venezuelan-owned US refinery that has recently been estimated at between $10 billion and $13 billion.
*Also read: ConocoPhillips, Exxon and 18 more creditors requested registration in Citgo auction
The boards that oversee Citgo since the company severed ties with PDVSA have been trying unsuccessfully to negotiate payments with some of the biggest creditors since last year.
Reuters claims US Senator Bob Menendez said he will introduce a bill that would add Venezuela to the jurisdiction of the Justice Department’s Foreign Claims Settlement Commission.
That process could provide a fairer way to resolve creditor claims. But it might be too late to stop the auction in Delaware.
With information from Reuters
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