Canadian miner Gold Reserve said on Monday its Delaware subsidiary, Dalinar Energy, has submitted an offer that could be chosen as the starting bid in a court-organized auction of shares in Venezuela-owned refiner Citgo Petroleum’s parent.
A federal court in Delaware, which is handling the auction for Citgo parent PDV Holding, is expected to pick the offer as a ‘stalking horse’ bid, which is the starting point or the minimally accepted offer.
If chosen, a topping-off period will begin for the court to receive rival bids, with a final hearing on the sale set for July, according to Gold Reserve.
The company said the terms of the bid would remain confidential until all offers have been reviewed.
Houston-based Citgo is the crown jewel of Venezuela’s assets overseas and has been the target of creditors seeking compensation for late President Hugo Chavez’ nationalization wave and President Nicolas Maduro’s failed debt payments.
The Delaware court last year found Citgo parent PDV Holding liable for the debt defaults and expropriations.
A total of 18 creditors holding arbitration rulings and court cases against Venezuela and state company PDVSA totaling $21.3 billion are pursuing proceeds from the auction of shares that was launched in October 2023, but a first bidding round last year failed to meet the creditors’ expectations.
(Reporting by Seher Dareen in Bengaluru; Editing by Shinjini Ganguli)
