Gold Reserve mounts challenge to Elliott-backed bid in Citgo parent auction

Thu Aug 28 2025

Gold Reserve has filed a motion to disqualify a rival offer from Elliott Investment Management affiliate Amber Energy in the high-profile court-led auction of PDV Holding, parent company of Venezuela’s US refining arm Citgo Petroleum, according to a report by Reuters.

Earlier this month, a court officer overseeing the sale identified Amber’s $5.86bn proposal as the leading bid, despite having previously recommended a $7.4bn offer from Gold Reserve’s subsidiary Dalinar Energy. Gold Reserve argues the decision disregards court-approved bidding procedures and risks underpaying judgment creditors by roughly $1.5bn.

Canadian-listed Gold Reserve, which has pursued compensation claims after Venezuela expropriated its mining assets, is both a bidder and creditor in the process. Siemens Energy, another creditor, has joined the motion opposing Amber’s bid.

Amber’s proposal includes a settlement with holders of defaulted Venezuelan bonds that would release a $2.86bn claim – a key factor in its selection as frontrunner. Gold Reserve contends the bid fails to comply with auction terms and has moved to strike it from consideration.

The auction, relaunched in January, aims to satisfy claims from 15 creditors tied to Venezuelan debt defaults and expropriations by state oil company PDVSA. A previous year-long bidding round collapsed amid creditor objections. Judge Leonard Stark is expected to review the new recommendation in September.

Source: https://www.hedgeweek.com/