A Delaware federal judge on Tuesday signed off on a $5.9 billion bid from hedge fund Elliott Investment Management to purchase the three coveted CITGO refineries.
The ruling is the latest turn in an eight-year legal battle over CITGO’s parent, PDV Holding, and names Elliott affiliate Amber Energy as the winning bidder for the plants, which have a combined capacity of more than 800 Mb/d.
Amber plans a major restructuring focused on cost-cutting, efficiency and tighter financial discipline, which we discussed in The Long And Winding Road, and in Changes.
The judge’s ruling is a big step, but it doesn’t close the book just yet. Parties have until Nov. 28 to make final objections before the court issues a formal sale order. Once that window closes, the court is expected to enter a final order transferring PDV Holding to Amber, subject to regulatory approvals. But there’s still a decent chance the deal doesn’t get ironed out until next year.
