RE:RE:RE:RE:RE:Something to rememberGood question. No one knows the answer. Citgo is worth what someone is willing to pay for it. Estimates put its valuation around $8 bilion. Not enough to pay everyone standing on line which is around $20 billion.
How does the court decided who gets what? Is it fair that everyone gets a pro rata share of the total proceeds? That wouldn't be fair to Crystallex. They're the ones who started this and won. They should get 100% of what they fought for. They paved the way for the others, including us, to piggy-backing on their action.
Citgo has quite an operation in the US - three sophisticated refineries and over 4,000 gas stations. Building such a company would take a lot of time and money, so someone might be willing to pay a substantial premium to have such a huge footprint instantly. This is a rare opportunity for the right buyer. About the only way someone could get a hold of such assets would be via hostile takeover which can be expensive. A bidding war between the oil giants would be nice.
One way or another, we're legally owed $1 billion. We may not get it all from the sale but the remainder would still be owed. But how do we get it? I wouldn't mind GRZ owning a sum of Citgo shares. We'd essentially become an oil company. Maybe any unpurchased Citgo shares from the auction couldl be distributed as further compensation to companies who didn't receive their full amount.
It's going to be an interesting 12 months coming up.