Elliott Recommended as Citgo Buyer in $5.9 Billion Proposal (1)

An Elliott Investment Management affiliate emerged as the recommended bidder in the court-ordered auction of Citgo Petroleum Corp.’s parent, offering $5.89 billion and a deal to pay off bondholders that have a pledge on the asset.

On the other side of the legal fight was Gold Reserve Ltd., a Venezuelan creditor suing the country for the expropriation of its mining assets. The firm was also offering to buy US-based PDV Holding, Citgo’s parent, in a proposal that would exclude bondholders. Gold Reserve said in a statement the revised offer was $7.9 billion.

The standoff reached a tipping ...