Gold Reserve Ltd V.GRZ

Sale will go forward.

[ugluuak]

There will be no settling with Venezuela on any of  these claims.
Citgo will cease to be an asset owned by PDVSA.

[slappyjo]

ugluuak, you sound very confident.  Do you have anything to back up your emphatic statement? If you're Venezuela and you're about to lose your most valuable asset and knowing you could save that asset by paying Crystallex $1.5 billion (or whatever it is), why wouldn't you?  Lawyers are smart.  If the other creditors' suits go away, they probably will settle with

[Hopeful123]

So if they settle with Crystallex what happens to the other parties..Do other parties lose out.

[mrmoribund]

VERY interesting question. I haven't spoken (yet) with the company about it. Here's my take based on what seems to me to make sense. First, I really doubt Crystallex (or Venezuela) would do this. Crystallex is essentially guaranteed to get the full amount soon enough. So I can't imagine they would ever settle for less than the full amount and I can't imagine the Venezuelan

[slappyjo]

If VZ agrees to pay Crystallex the full amount they are owed, and maybe even a premium, Crystallex would be crazy not to take it. Why wait another seven months to get what you're getting now?  There is incentive for VZ to settle now if this dissolves the current law suit. The "owners" of Crystallex is an investment company.  They are vultures.  This is a gamble. 

[RIDER1975]

Are you sure that settle with crystallex would be enough to dissoolve the lawsuit, once other credtors have already been attached to the case, with claims with simillar root? (Other question whether how fast could be the actual payment, as its an object of a permisson process also to be entitled to get that from the sanctioned country).

[mrmoribund]

I got it confirmed yesterday that this claim--Crystallex settling would dissolve the action--is 100% wrong. RIDER1975, you are correct. The other creditors are now named parties to the action. If Crystallex were somehow able to settle with Venezuela the action would simply continue without them.

[slappyjo]

mmoribund, how did you confirm this?   I made it very clear that I didn't know what would happen - only that someone who is knowledgeable in Delaware law said a settlement with Crystallex would end the suit at this point. If the case were to continue after any settlement, why would the Six Creditors submit a second request with the Court yesterday, asking the judge to allow the SPO

[mrmoribund]

Slappyjo, it would appear you were correct in your concerns. Thanks for that link. I did not realize that the "Six Creditors" were currently not, technically, "Sale Process Parties." (If they were then there would be no issue.) That said, the "reply in support of motion" gives the impression that this should fairly quickly be fixed. Hard to see what basis there

[slappyjo]

'Hard to see what basis there could be for the Court to NOT grant the simple thing...' The law and the SPO timeline are what will determine what happens.

[RIDER1975]

Slappyjo many thanks for sharing and your thoughts.