Gold Reserve Concerned Over Venezuela Request to Pause Citgo Sale — OPIS

Mining company Gold Reserve Inc., which submitted a bid in a U.S. government-run auction of Citgo's assets, on Thursday said it is concerned over the Venezuelan government's request for a four-month pause in the sale process and the court's handling of the auction.

The Spokane, Wash.-based company in a news release said Venezuela's latest request for more time is troubling "given the number of extensions to the sale process that have occurred to date."

The request was the fourth since the second round of bidding began in June, with court-appointed Special Master Robert Pincus requesting three of the delays to review the bids.

The company also said it is concerned Pincus has not disclosed any information about the sales process, after saying in July he was in negotiations with a bidder and was finalizing due diligence and taking other steps in support of a sale. He has not identified the bidder.

Gold Reserve also faulted Pincus for not providing "any specifics concerning the status of the negotiations with the unidentified bidder, including any specifics concerning the procedures for other potential bidders to submit topping bids after the sale motion is filed."

Gold Reserve, which said it is not the bidder, said it "has reserved all of its rights to object" to the sale motion "if and when it is filed."

In addition to being a bidder, Gold Reserve is among 12 Venezuelan creditors set to benefit from the sale of Citgo. The creditors had pushed for the sale of Citgo, Venezuela's prime overseas asset, to collect debts and arbitration awards the country has refused to pay.

Gold Reserve is seeking to recover $1.1 billion it said it is owed by Venezuela and submitted a credit bid for shares in Citgo's parent PDV Holdings.

Pincus earlier this week objected to the four-month pause in the auction. And Judge Leonard Stark with the U.S. District Court in Delaware on Wednesday set an Oct. 1 hearing on Venezuela's motion.

Gold Reserve said granting the pause would extend the sale process to at least January.

"We have worked with many great partners during this prolonged process but now, given the elapsed time, uncertainty and lack of visibility on the outcome, we are on our own and outside of the bidding," Executive Vice Chair Paul Rivett said in the release. "While we no longer have any insight into the process, we trust the special master will recommend a fair deal to the court and judgment creditors soon and that the topping period will be viable and vigorous."

This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.

--Reporting by Steve Cronin, scronin@opisnet.com; Editing by Jeff Barber, jbarber@opisnet.com

(END) Dow Jones Newswires

September 19, 2024 15:11 ET (19:11 GMT)

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