Reuters A U.S. judge has authorized the sale of shares in Citgo Petroleum’s Venezuelan parent company to an affiliate of Elliott Investment Management for $5.9 billion. This decision marks a significant step in a two-year auction designed to compensate creditors for Venezuela’s debt defaults and expropriations. The sale, expected to close next year pending regulatory approvals, will not transfer liabilities related to PDVSA or the Republic of Venezuela to the buyer.

• A U.S. judge approved the sale of Citgo’s Venezuelan parent company shares to an Elliott Investment Management affiliate.
• The sale is part of a $5.9 billion auction to pay creditors for Venezuela’s debt defaults and expropriations.
• The legal process began in 2017 with a case against Venezuela by mining company Crystallex.
• Elliott’s offer includes a $2.1 billion payment to holders of a defaulted Venezuelan bond.
• Judge Leonard Stark dismissed objections to Elliott’s bid, though Venezuela plans to appeal.
• Creditors including ConocoPhillips, Crystallex, Rusoro Mining, OI Glass, and Koch are expected to receive funds.
• The sale is anticipated to close next year, subject to regulatory and U.S. Treasury approvals.