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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/Bloomberg

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.