A U.S. federal judge is navigating a new dispute among creditors in the rebooted auction of shares in PDV Holding, the parent company of Venezuela-owned U.S. refiner Citgo Petroleum. The auction, aimed at repaying 18 creditors for debt defaults and expropriations by Venezuela and state oil company PDVSA, was relaunched in January after a previous year-long process failed due to disagreements over Citgo’s value and legal complications.

Lawyers representing Venezuela have objected to the auction method, and the $21 billion in claims exceed expected proceeds. The court set a minimum bid for PDV Holding shares after creditors rejected a $7.3 billion offer last year due to conditions. A court officer recommended a $3.7 billion bid by Red Tree Investment as a “stalking horse” bid, but the consortium that submitted the highest bid protested, seeking access to a sealed pact to pay holders of a Venezuelan bond. The judge granted the request to unseal the agreement.

The 18 creditors include bond holders and companies affected by expropriations in Venezuela. Creditors are pursuing various methods to secure payment, leading to a complex auction. ConocoPhillips, with the largest claim of almost $12 billion, has taken steps to preserve its priority among creditors. Creditors are seeking up to $21.3 billion, though Citgo’s valuation is up to $13 billion, and bids have been lower due to legal risks.

The Red Tree bid was selected for including a payment provision to PDVSA bond holders, potentially removing a significant obstacle. However, some creditors seek assurance that Red Tree’s agreement is a firm commitment. Red Tree’s bid includes $3.24 billion in cash, $458 million in non-cash consideration, and new convertible notes potentially valued at $1.5 billion. Other bidders have failed to reach a pact with PDVSA bond holders, whose agreement is crucial for accessing PDV Holding and its assets.