A $7.38 billion bid by a unit of Toronto-listed miner Gold Reserve was named preliminary winner of an auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum, organized by a U.S. court to pay creditors for debt defaults and expropriations in the South American country.

A court-appointed special master recommended a bid backed by Gold Reserve and Koch over a rival hedge-fund offer.

Gold Reseve said the US court officer overseeing the auction for PDV Holdings, the parent of Venezuela-owned US refiner Citgo Petroleum, recommended its $7.38B bid.