Venezuelan Creditors Object Gold Reserve $7.4B Citgo Auction Bid New York Court

Gold Reserve's subsidiary Dalinar Energy has placed a $7.4 billion bid to acquire Citgo Petroleum's parent company, PDV Holding, in an effort to repay Venezuela's debts, sparking significant legal challenges. Bondholders and other creditors, including Red Tree Investments and Crystallex International, have objected to the bid, arguing that their rights are being overlooked and questioning the appropriateness of the Delaware court's jurisdiction. The objections highlight the complex creditor landscape and the high stakes involved, as Citgo's refining assets are critical to the U.S. energy sector and the bid is backed by major banks, signaling strong institutional support. The court-appointed Special Master recommended Dalinar's bid as the highest credible offer, but the ensuing legal disputes could delay or complicate the sale process. Delaware District Court Judge Leonard Stark is scheduled to hear the objections before the August 18 sales hearing, with a timeline for memoranda and responses set by the court. This legal battle underscores the challenges in resolving Venezuela's financial crisis and the potential impact on global oil markets.