Elliott Affiliate Weighs New Bid for Citgo as Legal Risks Ease

An Elliott Investment Management affiliate is considering rejoining the bidding for Citgo Petroleum Corp.’s parent company, according to people familiar with the matter.

The affiliate, Amber Energy, had pulled out of the sale last month, leaving three groups of bidders to compete for the asset, including Red Tree Investments LLC, Vitol and a consortium led by Gold Reserve. But since then, other potential buyers, including TPG Angelo Gordon, have entered the contest, lured by easing legal risks related to the sale.

A Citgo Petroleum refinery in Lemont, Illinois, in 2010.

Photographer: Tim Boyle/Bloomberg

The auction, ordered by a US judge in Delaware, is intended to compensate creditors whose assets ...