Gold Reserve drops out of US bidding for shares in Citgo parent
Court official seeks new delay to negotiate sale terms
Proposed schedule pushes sale decision back to Dec. 3
Adds new delay on auction selection requested in paragraph 2, 9
By Marianna Parraga
HOUSTON, Sept 19 (Reuters) -Canadian miner Gold Reserve GRZ.V said on Thursday it has dropped out of a U.S. court-organized bidding for shares in a parent of Venezuela-owned oilrefiner Citgo Petroleum, citing court delays, and uncertainty over the sales process.
The move came on the same day the court official overseeing the bidding asked the federal court in Delawareto grant him additional time to conclude discussions with a bidder on sale terms. Creditors filing parallel lawsuits against Venezuela have affected the talks, the official said in a filing.
Houston-based Citgo, the seventh largest U.S. refiner by volume, 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.
The court found the Citgo parent liable for debt defaults and expropriations and 18 creditors holding rulings totaling $21.3 billion are pursuing proceeds from the auction of shares in PDV Holding that was launched last October. Offers are not expected to cover that amount entirely.
Gold Reserve had submitted a bid on June 11 for shares in PDV Holding.
However, the company, which has amore than $1 billion claim,said in a statement it was concerned by astay motion filed this week byVenezuela 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."
Robert Pincus, the court official overseeing the sale, on Thursday soughta fourth delay to complete his negotiations on sale terms in a filing with the court. He asked to be given until Sept. 26 to continuetalks and proposed the court now schedule a hearing on the recommendation for Dec. 3.
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.
Reporting by Marianna Parraga; editing by Gary McWilliams and Marguerita Choy
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Penafian: Entiti XM Group menyediakan perkhidmatan pelaksanaan sahaja dan akses ke Kemudahan Dagangan Atas Talian, yang membolehkan sesorang melihat dan/atau menggunakan kandungan yang ada di dalam atau melalui laman web, tidak bertujuan untuk mengubah atau memperluas, juga tidak mengubah atau mengembangkannya. Akses dan penggunaan tersebut tertakluk kepada: (i) Terma dan Syarat; (ii) Amaran Risiko; dan Penafian Penuh. Oleh itu, kandungan sedemikian disediakan tidak lebih dari sekadar maklumat umum. Terutamanya, perlu diketahui bahawa kandungan Kemudahan Dagangan Atas Talian bukan permintaan, atau tawaran untuk melakukan transaksi dalam pasaran kewangan. Berdagang dalam mana-mana pasaran kewangan melibatkan tahap risiko yang besar terhadap modal anda.
Semua bahan yang diterbitkan di Kemudahan Dagangan Atas Talian kami bertujuan hanya untuk tujuan pendidikan/maklumat dan tidak mengandungi – dan tidak boleh dianggap mengandungi nasihat kewangan, cukai pelaburan atau dagangan dan cadangan, atau rekod harga dagangan kami, atau tawaran, atau permintaan untuk suatu transaksi dalam sebarang instrumen kewangan atau promosi kewangan yang tidak diminta kepada anda.
Sebarang kandungan pihak ketiga serta kandungan yang disediakan oleh XM, seperti pendapat, berita, penyelidikan, analisis, harga, maklumat lain atau pautan ke laman web pihak ketiga yang terdapat dalam laman web ini disediakan berdasarkan "seadanya" sebagai ulasan pasaran umum dan bukanlah nasihat pelaburan. Sesuai dengan apa-apa kandungan yang ditafsir sebagai penyelidikan pelaburan, anda mestilah ambil perhatian dan menerima bahawa kandungan tersebut tidak bertujuan dan tidak sediakan berdasarkan keperluan undang-undang yang direka untuk mempromosikan penyelidikan pelaburan bebas dan oleh itu, ia dianggap sebagai komunikasi pemasaran di bawah peraturan dan undang-undang yang berkaitan. SIla pastikan bahawa anda telah membaca dan memahami Notifikasi mengenai Penyelidikan Pelaburan Bukan Bebas dan Amaran Risiko mengenai maklumat di atas yang boleh diakses di sini.
