Unique-Soft offers in Venezuela auction prompts country to propose different payment plan.

section. The content discusses the auction of shares of Citgo Petroleum, a Venezuela-owned oil refiner, to settle court-approved claims. The highest bid received was $7.3 billion, covering only a third of the claims. The auction, overseen by a federal court in Delaware, attracted creditors with claims totaling $21.3 billion. However, the initial bidding round yielded weak offers, prompting the need for alternative payment plans. Venezuela is considering a proposal to offer creditors a larger payout spread over several years while retaining ownership in the company. The court may have to reconsider Venezuela’s proposal as the current bids are insufficient to cover all claims.

Various entities, including oil giant ConocoPhillips and Koch Industries, have submitted bids for Citgo’s assets. Concerns over the future value of the company and its ties with Venezuela’s PDVSA have influenced the bidding process. Despite Citgo’s profitability, the bids fell short of expectations. The court is expected to set a second, binding round of bidding, but the prospects of higher offers remain slim. Venezuela’s proposed $10 billion payment plan aims to provide cash, securities, and shares in Citgo over a three-year period while allowing Venezuela to retain partial ownership.

Efforts are underway to garner U.S. support for the payment plan, tied to stronger protection for Citgo from creditors. The proposal involves moving Venezuela-related claims to the U.S. Foreign Claims Settlement Commission for better handling. However, unifying Venezuela’s opposition and gaining U.S. approval pose challenges. The proposal requires support from the U.S. Treasury Department and the Delaware court. Advocates of the plan are working to involve key opposition politicians to lead the initiative effectively.