Court pauses Crystallex pursuit of Citgo

Spanish Market: Crude oil, Oil products
12/12/19

A federal court today slowed efforts to sell shares of US independent refiner Citgo to satisfy Venezuelan debts.

Former Canadian mining firm Crystallex and US independent producer ConocoPhillips must wait for Venezuela to exhaust appeals with the US Supreme Court before continuing their pursuit of Citgo, the country's most valuable foreign asset, the US District Court for the District of Delaware decided today.

The court also ruled that at least two other plaintiffs must prove that Venezuela used its oil companies as an alter ego of the government, rather than relying on that finding from previous Crystallex litigation.

The decisions mark a reprieve for Venezuela's US-backed opposition government led by National Assembly leader Juan Guaido, who risks losing one of the only Venezuelan assets his shadow government controls. While the opposition government sought a longer stay and promised to restructure debts voluntarily, the court paused proceedings only long enough for the Supreme Court to review the matter.

"A stay any longer than the one the court is entering today is not, at this time, warranted," Judge Leonard Stark wrote.

The US Department of the Treasury repeated last week that a sale of Citgo shares could not proceed without executive branch approval. The Delaware court today solicited further guidance from the US Department of Justice.

Citgo and plaintiffs Crystallex, ConocoPhillips and OI European Group did not immediately return requests for comment.

Crystallex, controlled by US hedge fund Tenor Capital Management, argued yesterday that there was no reason for the court to delay the process of determining the value of Citgo shares in a sale. The company could not gather the details needed for Treasury to approve a sale process without continued litigation.

The court determined that moving forward could damage Citgo and Venezuelan national oil company PdV without ultimately producing a legal sale.

"Today's decision reflects the court's attempt to carefully balance the many competing interests in a dynamic and internationally sensitive set of circumstances," Stark wrote. "Should Crystallex believe the court's assessment is incorrect or an abuse of discretion, it can move to lift the stay — or seek to appeal this order."

Guaido appointed a parallel board controlling Citgo in February, which has cooperated with US bribery investigations and named new corporate officers.

Venezuelan president Nicolas Maduro continues to control PdV and Venezuelan institutions despite US sanctions aimed at crippling the country's oil sector.

More than a dozen companies, bondholders and other entities have filed in various US courts to seize Venezuelan assets in the US to satisfy more than $150bn in debts. Crystallex last year successfully persuaded the Delaware court that Venezuela used its oil companies as an alter ego of the state, and that Citgo was a fair target to satisfy debts.

The US Third Circuit Court of Appeals upheld that decision this year and rejected a Venezuelan request for a rehearing.

Today's decision was in part to stop "an influx of creditors to the court," Stark wrote.

By Elliott Blackburn

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14/05/25

Shale unable to absorb price decline: Continental

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Bolivian president bypasses reelection

14/05/25

Bolivian president bypasses reelection

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German road firms issued €10.5mn tender-rigging fines

14/05/25

German road firms issued €10.5mn tender-rigging fines

London, 14 May (Argus) — German competition authorities have found seven companies guilty of co-ordinating tenders and contracts with order values usually of between €40,000 and €200,000. The German Federal Cartel Office (Bundeskartellamt) imposed fines totalling €10.5mn ($11.8mn) on seven road repair companies for customer and tender collusion, it announced on 13 May. The companies involved are AS Asphaltstrassensanierung, bausion Strassenbau-Produkte, Bitunovia, Gerhard Herbers, alles fur den Bau, Mainka Strassenunterhaltung, and Muritzer Oberflechentechnik (Mot). The companies AS, bausion, Herbers and Bitunova were found to have divided various clients from the federal states of Saxony, Thuringia and Saxony-Anhalt among themselves across 2018 and 2019. In 2016-19, the companies bausion, Liesen, Mainka and Mot were discovered to have regularly co-ordinated on tenders from public contracting authorities in Brandenburg and, in 2016 and 2017, Saxony-Anhalt, and the companies Liesen and Mot also co-ordinated tenders in Mecklenburg-Western Pomerania. The violations affected a large number of tenders and contracts from public contracting authorities such as municipalities and state road construction authorities. The orders included road repair measures including surface treatment, patching of road surfaces, crack repair or the supply of bitumen emulsion or chippings. In addition to breaking antitrust law, the bid agreements are also punishable under Section 298 of the Criminal Code. The findings came to a head when the German Federal Cartel Office carried out a search operation in August 2019 together with the Dusseldorf Public Prosecutor's Office and the North Rhine-Westphalia State Criminal Police Office. When setting the fine, it was taken into account that Bitunovia had co-operated with the federal office within the framework of the leniency programme. All proceedings were concluded by way of amicable settlement and the fine notices are final. By Fenella Rhodes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Opec downgrades non-Opec+ supply growth forecasts

14/05/25

Opec downgrades non-Opec+ supply growth forecasts

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Sierra Leone plans upstream licensing round in 2025

14/05/25

Sierra Leone plans upstream licensing round in 2025

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