U.S. extends Citgo's protection from creditors for three months (updated)

Rusoro Mining

19/04/2023 16:13

(Adds details, background)
       WASHINGTON, April 19 (Reuters) - The U.S. on Wednesday
extended for three months a license that protects
Venezuela-owned oil refiner Citgo Petroleum  PDVSAC.UL  from
creditors trying to seize its assets to recoup pending debts.
        U.S. protections on the Houston-based refiner have
prevented bondholders and other creditors from moving ahead on
billions of dollars in claims against Venezuela issued by U.S.
courts and international tribunals.    
  
        The U.S. Treasury Department's Office of Foreign Assets
Control (OFAC) extended the general license until July 20,
according to the department's website.     
  
        A spokesperson for Citgo was not immediately available
to comment.
  
        Citgo split from Venezuelan state-run oil company PDVSA
in 2019 under an order by Venezuela's National Assembly after
the U.S. imposed sanctions intended to oust President Nicolas
Maduro. Washington has since 2019 recognized the opposition-led
congress as the entity controlling the refining subsidiary,
extending protection to prevent its breakup at the hands of
Venezuela creditors.       
  
        The three-month extension comes as a U.S. district court
judge is seeking federal approval to schedule an auction that
could lead to a breakup of the seventh-largest U.S. refiner by
volume.
  
        A U.S. court this month asked OFAC for guidance on its
aim to auction shares in Citgo's parent to cover a $970 million
judgment obtained by Crystallex International over the
expropriation of its mining assets in Venezuela. Any OFAC reply
would be relayed to the judge at month's end. 
  
        O-I Glass Inc  OI.N , Huntington Ingalls Industries
 HII.N , ACL1 Investments, Rusoro Mining Ltd  RML.V  and Gold
Reserve  GRZ.V  separately have won attachments contingent on
obtaining U.S. Treasury approval to seize assets, or an end to
the Treasury protection. Their judgments total $2.6 billion.
  
        ConocoPhillips  COP.N  separately has a claim against
Venezuela valued at $1.29 billion over the nationalization of
its oil assets in the country.  
  

 (Reporting by Marianna Parraga in Houston, Caitlin Webber in
Washington; Editing by Paul Grant and Marguerita Choy)
 ((caitlin.webber@thomsonreuters.com;))