The CITGO auction continues, and in its third joint status report to the judicial expert Robert B. Pincus, Gold Reserve and the Venezuelan parties insist on the demand for evidence regarding the sale process of PDV Holding Inc.’s shares, which owns the Venezuelan refinery located in the United States.
The CITGO auction is part of the case Crystallex International Corporation against the Bolivarian Republic of Venezuela, taking place in the U.S. District Court for the District of Delaware.
The report details the progress made by Weil, Gotshal & Manges LLP and Evercore Group, L.L.C. — advisers to Robert B. Pincus — in the search and production of documents, particularly those pertaining to communications. It also establishes new categories of documents that the advisers have agreed to search for and produce, such as commitment data and fees with the 2020 bondholders.
The document includes the parties’ proposed timeline for the submission of briefs related to a potential motion to disqualify the judicial expert and/or his advisers.
Third Status Report to the Judicial Expert of the CITGO Auction
On September 26, 2025, Gold Reserve Ltd. and the Venezuelan parties submitted the third status report to the judicial expert of the CITGO auction, Robert B. Pincus, and his advisers from Weil, Gotshal & Manges LLP and Evercore Group, L.L.C.
This third joint status report of the Crystallex International Corporation case against the Bolivarian Republic of Venezuela aims to substantiate a possible Motion for Disqualification against the judicial expert, based on alleged conflicts of interest.
Pincus’s advisers agreed to produce a significant amount of sensitive information regarding their business relations with a group of creditors identified as the “Listed PDVSA 2020 Bondholders.”
The main document production agreements include:
Financial and contracting data: detailed information on annual fees, income, dates, and descriptions of contracts with the PDVSA 2020 Bondholders since January 2021.
Conflict information: results from internal conflict checks, details on information barriers, and any conflict waiver related to the CITGO/PDVH sale process.
Communications with the court: written disclosures made to the court or the judicial expert regarding their contracts with the PDVSA 2020 Bondholders.
Finally, the report reveals substantial disagreement between the parties on the schedule for presenting and debating the possible disqualification motion. The Venezuelan Parties and Gold Reserve express concern over the potential delays in document production, while the judicial expert proposes an expedited timeline.
Status and Scope of Document Production
The report outlines the progress and agreements made for document production by Weil and Evercore, as well as the issues still under discussion.
Progress in Document Production
Weil, Gotshal & Manges LLP (Weil):
Made significant advances in the search and collection of documents requested in the previous report.
Committed to completing the production of non-email documents by Monday, September 29, 2025.
Anticipated completing the production of emails and other communications by Friday, October 3, 2025.
Evercore Group L.L.C. (Evercore):
Expects to produce initial information by mid-week of September 29, 2025.
For most categories, apart from emails, Evercore does not maintain such documents in the ordinary course of its business but expects to provide the requested information by October 3, 2025.
Concerning emails, Evercore is working diligently, has identified relevant personnel, developed search terms, and prepared a protocol that it is willing to discuss and reasonably modify with the requesting parties.
Important Note: Both Weil and Evercore reserve the right to protect privileged and confidential communications with their clients. The Venezuelan parties and Gold Reserve also reserve all their rights in this regard.
Additional Agreements on Evidence Production
To avoid a formal dispute over evidence production, the judicial expert’s advisers agreed to produce documents showing any work done for — or payments received from — the “Listed PDVSA 2020 Bondholders” since January 1, 2021, to date.
The specific information to be produced includes:
• Contracting data:
Total annual fees/income generated by the Listed PDVSA 2020 Bondholders and their known affiliates.
Start and end dates of each contract.
Brief descriptions of each contract, sufficient to determine if it related to the CITGO/PDVH sale process or the 2020 Bonds.
Any contingent fee agreements or estimated fee ranges for currently open matters.
Expected fee projections starting in 2024, if included in internal business plans or finalized budgets in 2024 or 2025.
• Conflict information:
Results of conflict checks regarding the simultaneous representation of the judicial expert and the Listed PDVSA 2020 Bondholders.
Information on any implemented information barriers.
Identification of any applicable conflict waivers related to the CITGO/PDVH sale process.
• Written disclosures to the court or judicial expert:
Weil will produce any written communication to the court or judicial expert about its contracts with the Listed PDVSA 2020 Bondholders.
Weil committed to reviewing the transcripts of ex parte conferences with the Court to identify if potential conflicts were discussed and will highlight the dates of such transcripts so that Gold Reserve or the Venezuelan Parties can request their publication.
Ongoing Discussion Points
Zero-dollar matters: Gold Reserve and Venezuela requested an explanation regarding fee arrangements where Weil or Evercore received no payment for already closed matters, as well as the names of the relevant personnel who worked on them.
Key individuals: They reserve the right to request information on contracts with key individuals associated with bidders or Bondholders, which Weil and Evercore will consider on a case-by-case basis.
Depositions: The parties plan to meet separately to discuss the necessity and timing of any requested depositions.
Disagreement on Procedural Timeline
The parties failed to reach a unanimous agreement on a timeline for the submission of a possible Motion for Disqualification of the Judicial Expert. Three distinct positions were presented to the Court.
Proposal / StatementProposed Key DatesArguments and ConditionsJudicial Expert’s ProposalOpening Brief: October 9 Opposition Brief: October 16 Reply: October 19 Oral Argument: October 20Proposes a very expedited schedule to resolve the motion.Venezuelan Parties’ StatementOpening Brief: October 8 (conditional)Express concern about whether document production will be completed on time. They agree to submit their brief on October 8 only if evidence production is finished without infringing their rights. Request standard page limits be applied.Gold Reserve’s ProposalOpening Brief: October 17 Opposition Brief: October 24 Reply: October 29 Oral Argument: TBDShare the same concerns regarding document production timelines and propose a significantly extended schedule.
See in Sin Filtros “Trump Says NO to Maduro: Judicial Scandals Erupt in the U.S.”: