Contrarian Funds' $3.7 billion bid recommended for Citgo auction

A U.S. court officer is recommending a $3.7 billion bid from an affiliate of Contrarian Funds as the starting point for an auction of shares in Citgo's parent company, PDV Holding. The recommendation comes from a court filing made public on Friday. The deadline for bids was March 7, and four potential offers were submitted. The offer from Red Tree Investments, part of Contrarian Funds, was highlighted for its high purchase price and low conditions. Judge Leonard Stark will decide whether to accept this recommendation before moving forward with the auction. Last year's auction saw creditors reject a $7.3 billion offer from Elliott Investment Management due to its many conditions. The court aims to set a clear starting bid to maximize funds for creditors. If Red Tree's bid is successful, it would purchase all shares of PDV Holding, with the money going to creditors. The proposed deal includes $3.24 billion in cash and $458 million in other assets. A period for rival bids will follow, with a final decision expected in July.