By Marianna Parraga
Houston (Reuters) -An American justice officer is preparing to recommend a winner during an auction for the auctions of the parent company of Citgo Petroleum, with affiliates of the Elliott Investment Management and Miner Gold Reserve Coverage Charting Competition for the American refiner.
The US court officer Robert Pincus faces a deadline on Monday to determine whether an offer of $ 7.4 billion from the Gold Reserve subsidiary, Dalinar Energy, which he previously recommended, remains the favorite or a rival offer is higher.
The affiliate of Elliott, Amber Energy, a Vitol raw materials company unit and a consortium led by the Black Lion Capital Advisors Investment Capital Company submitted offers in the final stages of the call for tenders. This prompted the court to extend the deadline for auction on Friday and delay a final sales audience in September.
Amber and Gold are now neck in the neck in the competition, the other bidders late, according to documents and sources close to the preparations for the offers. But their offers differ considerably.
Among the main differences are the amount of species offered in relation to non -monetary considerations, and key negotiations to pay the holders of a Venezuelan obligation was guaranteed with Citgo Equity.
Amber told the Delaware court this week that he had reached a pact with more than two -thirds of the holders. The Gold Reserve Group, whose offer does not include a payment provision for bonds, bet that its offer will be considered to be superior due to its coverage of 11 of the 15 applicants aligned in cash.
Judge Leonard Stark earlier this year asked Pincus advisers and the courts to prioritize the price on “certainty of closure”, a term defining the chances of a proposal to become a real takeover.
Amber, whose offer offers $ 5.86 billion to creditors and $ 2.86 billion to bond, is required to demonstrate the court of its agreements. Gold Reserve Group has the possibility of opposing any competing offer due to procedural problems. It can also increase its own offer if it loses.
Amber and Dalinar did not immediately respond to requests for comments.
Friday, as part of a new calendar approved by the court, the Dalinar of Gold Reserve will only have three days to match any higher proposal. Gold Reserve said on Friday that he had hired the Investment Bank Cantor Fitzgerald & Co as a financial advisor as part of his offer.
A potential Dalinar strategy to raise its offer could involve adding more creditors to its proposal, which is in negotiations, sources said.
Amber was also in talks with at least two auction creditors arranged to transform their complaints into credit offers, according to one of the sources.
