Black Lion Capital Advisors has submitted a $8bn all-cash bid for PDV Holding, the US-based parent of Citgo Petroleum, as part of a court-supervised auction aimed at repaying creditors tied to Venezuela’s sovereign defaults and expropriations, according to a report by Reuters.
The bid, made through the Black Lion Citgo Group consortium, includes institutional backing from Quazar Investment, Anex Management, and Fortress Management. In addition to the $8bn base offer, the group has committed to covering court and government fees and insulating funds of up to $3bn – bringing total deal support beyond $11bn.
The auction process, overseen by a Delaware court, is set to recommend a winning bidder by 2 July, with a final hearing scheduled for 18 August. Black Lion’s proposal tops the initial $3.7bn stalking horse bid submitted by Red Tree Investments earlier this year and reportedly outpaces all known topping bids to date.
Notably, Black Lion did not participate in the first phase of the auction, but has now emerged as a leading contender amid a competitive field that includes rival bids from creditors like Gold Reserve, Rusoro, and Koch Industries.
Judge Leonard Stark, presiding over the years-long case, has instructed the court officer to prioritise bid value over closing certainty.
The sale remains subject to clarification from the US Treasury regarding restrictions on ownership transfers of Citgo, which have historically protected the asset from creditor claims.
