On Saturday, October 11, 2025, Invezz reported that Toronto-listed Gold Reserve (GRZ.V) has initiated legal action to disqualify a Delaware court officer, the presiding judge, and two advisory firms involved in the auction of shares of Citgo Petroleum’s parent company. The motions, filed on Friday, represent the latest development in a protracted dispute surrounding the high-profile auction of PDV Holding, a unit of Venezuela’s state-owned oil company, PDVSA.
Gold Reserve, one of fifteen creditors seeking repayment for billions in defaulted debts and expropriations in Venezuela, has been engaged in a legal battle concerning the Delaware court’s handling of the auction process. The company previously contested attempts to declare Amber Energy, an affiliate of Elliott Investment Management, as the winner of a $5.9 billion bid. Gold Reserve contends that its $7.9 billion bid, recommended in August, should have received preferential consideration.
In its filings, Gold Reserve is emphasizing potential conflicts of interest among key participants in the proceedings. The company is seeking the removal of Judge Leonard Stark and court officer Robert Pincus, who initially supported Gold Reserve’s bid but later shifted his support to Elliott’s Amber Energy. Additionally, Gold Reserve has requested a stay on all decisions regarding the bidding process pending resolution of the disqualification matters. The company asserts that full transparency is necessary for its shareholders.
Gold Reserve’s scrutiny extends beyond court personnel, targeting two advisory firms, Weil, Gotshal & Manges and Evercore (EVR.N), which have assisted the court in evaluating the bids. The company argues that Weil should be disqualified due to an alleged conflict of interest, claiming the law firm represented Elliott during the Citgo sale process. Gold Reserve also alleges that both Weil and Evercore maintain ongoing relationships with bondholders who could benefit from Elliott’s bid structure.
The conflict of interest concerns have also been raised by Venezuelan representatives, who sought to suspend a key sale hearing in September, citing concerns about Weil’s role. Although Judge Stark denied that request, allowing the process to proceed, Gold Reserve’s recent filings echo these concerns. Venezuelan parties have also filed motions to disqualify Pincus, Weil, and Evercore, increasing pressure on the Delaware court to address the allegations before moving forward with the sale.
Judge Leonard Stark is scheduled to hold a hearing on October 21 to consider the motions and address the conflicts that have arisen following Pincus’s recommendation change. A final decision on the auction result is expected from the judge after the hearing.
The outcome remains crucial for Gold Reserve, as its attempt to reverse the court’s guidance and revive its $7.9 billion offer underscores broader legal concerns regarding fairness and transparency in one of the most significant asset sell-offs related to Venezuela’s ongoing international debt disputes.
Creditors and the Venezuelan government await the hearing’s outcome, which could determine ownership and the distribution of billions in proceeds among competing claimants.
Source: Invezz
