With Citgo’s Future on the Line, U.S. Prepares 11th-Hour Rescue
- PDVSA likely to default on $913 million payment due Oct. 28
- If payment is missed, creditors could try to seize Citgo
A pro-government supporter holds a banner displaying the logo of Citgo Petroleum, the U.S. refiner controlled by Petroleos de Venezuela SA (PDVSA)
Photographer: Marco Bello/BloombergThis article is for subscribers only.
The Trump administration is preparing to take action Friday with a measure to protect Venezuela’s most prized asset abroad from creditors before a key debt payment, according to people familiar with the matter.
U.S. officials are discussing a last-ditch move that would prevent holders of Petroleos de Venezuela’s 2020 bonds, backed by 50.1% of Citgo Holding Inc.’s shares, from seizing the collateral if there’s a default. A decision must be made in the coming days as the clock ticks down on PDVSA’s $913 million payment due Oct. 28.