for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up
Energy

U.S. again extends protection for Citgo from PDVSA creditors

The Citgo Petroleum Corporation headquarters are pictured in Houston, Texas, U.S., February 19, 2019. REUTERS/Loren Elliott

(Reuters) - The U.S. Treasury Department on Tuesday once again extended a measure barring creditors of Venezuelan state oil company Petroleos de Venezuela from seizing shares in the parent company of U.S. refiner Citgo, a PDVSA subsidiary.

PDVSA pledged a majority stake in Citgo’s parent as collateral for its 2020 bond, which is now in default. But the company is now controlled by the Venezuelan opposition, after Washington sanctioned PDVSA last year as part of its bid to oust Venezuelan President Nicolas Maduro.

Tuesday’s measure prohibits bondholders from seeking to attach Citgo shares through Jan. 19, 2021 the day before the U.S. presidential inauguration. President Donald Trump, a Republican who has taken a hard line against Maduro, is facing Democratic challenger Joe Biden in a Nov. 3 vote.

A previous measure protecting Citgo was set to expire on Oct. 20.

Late last month, Citgo announced that chairwoman Luisa Palacios would resign at the end of October, the latest departure from the leadership team opposition leader Juan Guaido assembled to protect Venezuela’s overseas assets.

for-phone-onlyfor-tablet-portrait-upfor-tablet-landscape-upfor-desktop-upfor-wide-desktop-up