Gold Reserve Wins Citgo Auction Amid Fierce Bidding

A U.S. court officer has recommended miner Gold Reserve's $7.38 billion bid for Citgo Petroleum's parent shares, amidst heavy competition. The auction, part of a longstanding legal case against Venezuela, may allow creditors to claim nearly $19 billion. Judge Leonard Stark will finalize the decision next month.

A U.S. court officer has favored miner Gold Reserve's $7.38 billion bid in an auction involving shares of Citgo Petroleum's parent company, Venezuela-owned PDV Holding. This decision emerged after intense bidding competition among multiple entities seeking the seventh-largest U.S. refiner.

Court officer Robert Pincus selected the bid after reviewing five offers submitted during the auction's "topping" phase, concluded in late June. These proceedings are part of a legal action initiated by the Canadian miner, Crystallex, eight years ago. The Delaware federal court ruling found PDV Holding liable for Venezuela's financial obligations, paving the way for claims exceeding $19 billion from over a dozen creditors.

The auction could soon conclude pending approval from Judge Leonard Stark, with a final hearing scheduled for August 18. Should Venezuela fail to retain equity in Citgo, it risks losing a valuable overseas asset amidst significant national debt and strained international relations.

(With inputs from agencies.)