Creditors Push Back
ConocoPhillips argued that Venezuela and its affiliates have consistently tried to derail the Citgo sale, filing “an inordinate number of motions and objections,” including four disqualification bids.
“Those circumstances warrant the special master’s request for reallocation to the Venezuela parties,” ConocoPhillips said.
Crystallex, whose claim arises from its ouster from a Venezuelan gold mine near the Guyana border, echoed that view. It argued the disqualification efforts were “tactical, untimely, and meritless,” and said Venezuela and Gold Reserve should bear sole responsibility for the expenses tied to opposing them.
ACL1 Investments Ltd., owed roughly $119 million under defaulted Venezuelan bonds, said the burden of paying its share of Pincus’ fees was especially heavy given its far smaller expected recovery compared with creditors such as Crystallex, which is owed more than $1 billion. For ACL1, covering those costs would be “inequitable,” it argued.
Venezuela countered in January that its motion to disqualify Pincus was never deemed frivolous or unreasonable.
“It is difficult to understand how the special master and his advisers would have felt the need to spend more than $3 million (of which at least $2.78 million appears to consist of legal fees billed by [Weil Gotshal & Manges LLP]) to defend against a frivolous motion,” the country said.
