HOUSTON, Sept 19 (Askume) – Canadian miner Gold Reserve (GRZ.V) said on Thursday it has withdrawn from a U.S. court-ordered bid for shares in parent company Citgo Petroleum, citing court delays and uncertainty about the sale process.
Houston-based Citgo, the crown jewel of Venezuela’s offshore companies, has been the target of creditors seeking compensation for the late President Hugo Chavez’s wave of nationalizations and President Nicolas Maduro’s failure to repay debts.
Gold Reserve said in a statement that it was concerned about the recent adjournment motions filed by Venezuela and PDV Holding, as the deadline for nominating a winner has been extended three times so far.
“We have worked with many excellent partners throughout this lengthy process, but now, given the passage of time, uncertainty of the outcome, and lack of visibility, we are standing alone and are not participating in the bidding process,” Executive Vice President Paul Rivett said.
He said the company hoped the court officials overseeing the tender would “recommend a fair deal to the court and the judgment creditors as soon as possible.”
Gold Reserve said court officials overseeing the auction “did not provide any details on the status of negotiations with the remaining bidders.” It added that the court “has not provided any details about the process for other potential bidders to submit their highest bids once the offer for sale is filed”.
The US District Court for the District of Delaware found Citgo’s parent company PDV Holding liable for Venezuela’s debt and ordered an auction to satisfy debt default and ownership claims. The decision opens the door for oil producers, mining companies, bondholders and industrial groups to seek compensation.
Gold on June 11 submitted a tender offer for shares in Citgo’s parent company PDV Holding, which was found responsible for Venezuela’s debt default and seizure.
