HOUSTON, Sept 19 (Askume) – Canadian mining company Gold Reserve (GRZ.V) said on Thursday it had avoided a stake in the parent company of Venezuelan refiner Citgo Petroleum after court delays and a sale . A U.S. court ordered the takeover
The same day, court officials overseeing the bidding asked a federal court in Delaware for more time to complete discussions with bidders on the terms of the sale. The official said in the filing that parallel lawsuits filed by creditors against Venezuela were affecting negotiations.
The Houston-based Citgo refinery, the seventh-largest in the United States, is the crown jewel of Venezuela’s offshore companies and the latest in a wave of nationalizations under the late President Hugo Chavez and calls for President Nicolas Maduro to shut them down after failing to repay debts.
The court found Citgo’s parent company liable for a total of $21.3 billion for debt defaults and buyouts and entered judgments against 18 creditors who are seeking proceeds from a PDV Holdings stock auction launched last October. The offers are not expected to fully cover that amount.
Gold Reserve submitted a tender offer for shares in PDV Holding on June 11.
However, the company, which is claiming more than $1 billion , said in a statement it was concerned about a stay motion filed this week by Venezuela and PDV Holding , which has so far postponed three times the date to declare a winner.
“We have worked with many great partners throughout this long process, but now, given the passage of time and the uncertainty of the outcome, we feel left alone in the face of uncertainty and uncertainty and have withdrawn from the bidding process.”
He said the company hopes the court officials overseeing the acquisition “will recommend a fair deal to the court and judgment creditors as soon as possible.”
Robert Pincus, the court official overseeing the sale, sought a fourth extension in an application filed with the court on Thursday to complete negotiations on the terms of the sale . He sought to continue negotiations past September 26 and suggested the court immediately schedule a December 3 hearing on the proposal.
Gold Reserve said court officials overseeing the auction “did not provide any specific information on the status of negotiations with the remaining bidders.”
The court also noted that “no specific information was provided regarding the process by which other potential bidders submitted their highest bids after the offer to sell was submitted.”
