Sale Order Sets Default Cost Allocation
The judge pointed to a sale procedures order governing payment of the special master’s expenses, which states that such costs “shall be shared by the sale process parties and any additional judgment creditors.”
While the order allows the special master to seek deviation “if the circumstances require” — such as when a party generates excessive disputes or takes unreasonable positions — Stark concluded that shifting the entire $3.1 million bill to Venezuela and Gold Reserve was not justified.
The fee fight unfolded through letters filed last month. Defunct mining company Crystallex International Corp., ConocoPhillips and ACL1 Investments Ltd. — all Venezuela creditors — urged Stark to make Venezuela, PDVSA and Gold Reserve foot the bill.
The structure of the case means judgment creditors who stand to benefit from the sale must shoulder sale-related costs. At stake are shares of PDVSA subsidiary PDV Holding Inc., the indirect parent of oil giant Citgo.
