A federal judge on Thursday denied efforts to unseat himself and the court-appointed special master overseeing the sale of Citgo’s parent company, ruling that the attempts were both procedurally flawed and legally baseless. The sale aims to satisfy over $22 billion in Venezuelan debt, in what has become one of the most closely watched asset auctions in U.S. court history.
In a 54-page opinion, U.S. Circuit Judge Leonard P. Stark concluded that the challenges were untimely and based on waived arguments. He further ruled that neither his impartiality nor that of Special Master Robert Pincus, along with his advisers at Weil Gotshal & Manges LLP and Evercore Inc., could be reasonably questioned.
The Long Road to the Citgo Sale
Judge Stark, formerly of the District of Delaware and now on the Federal Circuit, continues to oversee the sprawling litigation brought by Venezuela’s creditors. The motions to disqualify him were filed by Gold Reserve Ltd., Venezuela, state-owned oil company PDVSA, and Citgo, whose parent, Citgo Holding Inc., is indirectly owned by PDVSA through PDV Holding Inc.
The shares of PDV Holding are being auctioned off under court supervision — a historic and contentious process designed to compensate creditors holding billions in unpaid arbitral awards.
