Canadian miner Gold Reserve (GRZ.V) said on Thursday it has dropped out of a U.S. court-organized bidding for shares in oil refiner Citgo Petroleum's parent, citing court delays, and uncertainty over the sales process.
Houston-based Citgo is the crown jewel of Venezuela's companies 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.
Gold Reserve said in a statement it was concerned by the recent stay motion filed by Venezuela and PDV Holding given the three extensions to naming a winner to date.
"We have worked with many great partners during this prolonged process but now, given the elapsed time, uncertainty and lack of visibility on the outcome, we are on our own and outside of the bidding,” said Paul Rivett, executive vice chair, in a statement.
He said the company hopes the court officer overseeing the bidding "will recommend a fair deal to the court and judgment creditors soon."
The court officer overseeing the auction "has not disclosed any specifics concerning the status of the negotiations" with the remaining bidders, Gold Reserve said. The court also has not provided "any specifics concerning the procedures for other potential bidders to submit topping bids after the sales motion is filed," it added.
A U.S. District court in Delaware found Citgo parent PDV Holding liable for Venezuela's debts and ordered the auction to satisfy claims for debt defaults and expropriations. The decision opened the door to oil producers, mining firms, bondholders and industrial conglomerates seeking compensation.
Gold had submitted a bid on June 11 for shares in PDV Holding, a Citgo parent that was found liable for Venezuela's debt defaults and expropriations.
