Credit bid game is onSo Crystallex is preparing a credit bid.
Red Tree is preparing a different credit bid.
Gold Reserve has said it will be submitting a credit bid.
Easy to see why GRZ would submit a bid. They want to make sure the bidding is high enough that, if they don't get Citgo, they will get their award paid in full.
But Crystallex and Red Tree are much higher up in the creditor waterfall. They will get paid in full no matter what. So why the bids?
No doubt either of them would be happy to own a chunk of Citgo (rather than their award) if the price were reasonable enough. And Elliott's horrible bid certainly set the bar very low.
What I suspect they're most interested in, however, is getting the bidder protection. Elliott / Amber wanted bidder protection of $365 million. Gold Reserve was okay with only $100 million. So probably the Court will approve bidder protection of, I'd guess, $100 million. Then if some big oil name comes in and tops your bid, you get to keep a cool extra $100 million. And then you get your award paid in full anyways. As long as you'd be okay to buy Citgo at your bid price then you should want to bid.
How much does it cost to prepare and submit a bid? My guess: 25,000? Peanuts compared to that bidder protection payday you might collect.
No surprise even the high-ups in the creditor waterfall are getting credit bids prepared.