I can't see how the court could accept a credit bid. The whole purpose of the Citgo sale is to pay off creditors and a credit bid (or partial credit bid) would reduce the number of payees who would get the full amount they are due.

If Citgo sells for half its value - $6 billion, $2 billion in cash and $4 billion credit, - then theoretically only KRY would get paid.  That is contrary to what this whole exercise was designed to achieve.  Years of litigation and countless millions in legal fees would be wasted.

There's also the possibility the US FTC won't allow COF to own these assets due to antitrust issues.