Gold Reserve Nears $7.38B Citgo Parent Bid Approval

Gold Reserve Ltd. has been selected by a Delaware court-appointed special master as the recommended buyer for PDV Holding, the parent company of CITGO Petroleum, with a $7.38 billion bid. This bid, submitted through Gold Reserve’s subsidiary Dalinar Energy Corporation, is considered the highest that meets court requirements and covers claims for 11 of the 15 main creditors in an ongoing effort to satisfy nearly $19 billion in Venezuelan debt. The sale follows years of unpaid debts, international lawsuits, and asset seizures by Venezuela, threatening the loss of CITGO, its most valuable foreign asset. A final sale hearing is scheduled for August 18, with potential objections from bondholders and other bidders expected, and requires court and U.S. Treasury approval due to sanctions. CITGO’s profitability has significantly declined amid U.S. sanctions since 2019, and the auction bids have all been below the company’s previous valuation, underscoring the complex financial and legal challenges facing Venezuela. The outcome of the sale will have major implications for Venezuela’s foreign assets and creditor repayments.