Creditors of Venezuela have been favorably positioned to recoup billions of dollars they’re collectively owed in an upcoming auction for control of U.S. oil giant, Citgo.
However, in the midst of a request from a hedge fund petitioning for a “more equitable” distribution of the proceeds, the creditors are urging District of Delaware to maintain the original order of priority.
The Venezuelan creditors filed successful motions for a writ of attachment over shares of PDV Holding – the indirect parent company of Citgo – between June 29th and August 1st of 2023. Gramercy, an affiliate of the hedge fund Gramercy Funds Management LLC, did not file their writ of attachment over PDV Holding shares until August 17th, 2023.
Gramercy now argues that the order of priority which is meant to reward creditors who were first in line to attach the PDV Holding shares – is no longer fair, given that many of the creditors that applied for attachment orders did so within days of each other.
Valores Mundiales SL and Consorcio Andino SL, affiliates of Gruma, a creditor, are represented in this case by Andrew S. Dupre and Sarah E. Delia of McCarter & English, LLP.