Blue Water Venture Partners Formally Requested Approval From The US District Court For Its $10 $10B bid To Take Over CITGO
Benzinga Newsdesk 1 year ago
M&ANewsLegal
Blue Water Venture Partners, LLC ("Blue Water"), an entity affiliated with Joseph Hernandez, the Chairman and Chief Executive Officer of Blue Water Acquisition Corp III ("BWAC III") announced today that it has
Blue Water Venture Partners, LLC ("Blue Water"), an entity affiliated with Joseph Hernandez, the Chairman and Chief Executive Officer of Blue Water Acquisition Corp III ("BWAC III") announced today that it has formally requested approval from the United States District Court for the District of Delaware to consider its unsolicited $10 billion bid for the assets of CITGO Petroleum Corporation.
The motion, filed September 12, 2025, in the matter of Crystallex International Corp. v. Bolivarian Republic of Venezuela (Case No. 17-mc-151), seeks Court authorization for the Special Master to evaluate the proposal. To date, no party has filed any response or objection to the request.
The bid from Blue Water Venture Partners represents the highest offer received to date to our knowledge, surpassing competing bids from Amber Energy and Gold Reserve. Key features of the proposed transaction include:
- $10 billion total bid value – exceeding all prior offers.
- Creditor flexibility – judgment creditors may choose immediate cash at closing or equity in a U.S.-listed public company on NASDAQ, subject to regulatory review.
- Bondholders settlement fund – dedicated to extinguishing PDVSA-2020 bondholder claims, ensuring a litigation-free transfer of assets.
- Reduced closing risk – through a public market equity structure providing enhanced liquidity and recovery for creditors.
"Blue Water's proposal, alongside BWAC III, is designed to maximize value for creditors, deliver a clean resolution of outstanding bondholder disputes, and provide a clear path to a U.S.-controlled, publicly listed energy company," said Joseph Hernandez, Senior Managing Partner of Blue Water Venture Partners and Chairman & CEO of BWAC III. "This is a superior alternative that protects stakeholders, strengthens American energy security, and positions CITGO for long-term success. Blue Water is fully prepared to engage immediately upon Court approval and respectfully urges the Court to grant its motion authorizing the Special Master to consider its bid and initiate formal discussions."