Citgo Opening Bidder Is Red Tree as Judge Signs Off on Floor (3)

Red Tree Investments LLC was approved as the opening bidder for Citgo Petroleum Corp.’s parent company, jump-starting a new effort to attract higher offers that will help compensate creditors of Venezuela whose assets were seized.

Judge Leonard Stark in Delaware on Monday signed off on a recommendation by a court-appointed adviser that puts the starting offer at about $3.7 billion. The move comes after Stark last year shot down an attempt by an affiliate of Elliott Investment Management to set the floor for bids after he found problems with its proposal, and follows objections by other bidders to the ...