Soaring legal fees in snarled Citgo auction rankle companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 25 2024
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Source: Reuters
Stalled Auction and Rising Costs: Court advisers have charged nearly $30 million for a delayed auction of Citgo Petroleum shares, leading to frustration among creditors who are awaiting compensation for debt defaults in Venezuela. The fees have surged significantly, with one creditor challenging a $4.1 million bill for September.
Judicial Intervention and Future Bids: U.S. Judge Leonard Stark criticized the involved law firms and proposed changes to the auction process, which could result in at least two new bids once Citgo's financial data is accessible, despite threats from an investor affiliate to withdraw if changes are implemented.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
