Venezuelan creditors eyeing Citgo assets face uphill battle

15 Dec 2017   Venezuela

Citgo Petroleum may look like a tempting target for bondholders of its parent company, Venezuelan-owned oil driller PDVSA, but the refinery operator’s complex debt structure could make its assets difficult for creditors to seize, legal experts said. As Venezuela careens closer to a default, some holders of PDVSA bonds set to expire in 2020 and backed by a pledge of Citgo stock are preparing to go to U.S. courts to foreclose on Citgo shares, according to sources familiar with the situation. That may not be easy. Energy producer ConocoPhillips Co has gone to court alleging the pledge of 50.1 percent of Citgo stock is fraudulent, meaning the PDVSA bondholders will have a tough time getting their hands on the stock. “Lots and lots of claimants have been circling Venezuela and PDVSA, so there is plenty of competition for every scant asset crumb, which means we […]

Comments are closed.