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Venezuela's foreign creditors try to lay claim to Citgo
Source: Washington Post
Venezuela’s foreign creditors try to lay claim to Citgo
By Jeanne Whalen and
Anthony Faiola October 17 at 8:11 PM
As crisis-plagued Venezuela struggles to pay its bills at home and abroad, foreign creditors are circling one of the country’s most valuable assets: Citgo, the Houston-based oil company that it has owned since 1990.
If Citgo is seized and sold to pay Venezuela’s debts, it could disrupt one of the most reliable sources of cash for a country already reeling from hyperinflation, food and medicine shortages, and a population exodus. U.S. sanctions aimed at pressuring President Nicolás Maduro, who has overseen the worst of the country’s implosion, have exacerbated the government’s pain, largely blocking it from the U.S. financial system.
The fight over Citgo is unfolding in courtrooms and boardrooms across North America and Europe — with a key decision expected by the end of the year.
Two Canadian mining firms are trying to acquire parts of Citgo as compensation for Venezuela’s expropriation of their assets more than a decade ago. A Russian oil company and holders of bonds issued by Venezuela’s state oil producer have staked a claim to Citgo shares. ConocoPhillips suggested it may also pursue the company.
-snip-
By Jeanne Whalen and
Anthony Faiola October 17 at 8:11 PM
As crisis-plagued Venezuela struggles to pay its bills at home and abroad, foreign creditors are circling one of the country’s most valuable assets: Citgo, the Houston-based oil company that it has owned since 1990.
If Citgo is seized and sold to pay Venezuela’s debts, it could disrupt one of the most reliable sources of cash for a country already reeling from hyperinflation, food and medicine shortages, and a population exodus. U.S. sanctions aimed at pressuring President Nicolás Maduro, who has overseen the worst of the country’s implosion, have exacerbated the government’s pain, largely blocking it from the U.S. financial system.
The fight over Citgo is unfolding in courtrooms and boardrooms across North America and Europe — with a key decision expected by the end of the year.
Two Canadian mining firms are trying to acquire parts of Citgo as compensation for Venezuela’s expropriation of their assets more than a decade ago. A Russian oil company and holders of bonds issued by Venezuela’s state oil producer have staked a claim to Citgo shares. ConocoPhillips suggested it may also pursue the company.
-snip-
Read more: https://www.washingtonpost.com/business/economy/venezuelas-foreign-creditors-try-to-lay-claim-to-citgo/2018/10/17/b7b96440-c369-11e8-b338-a3289f6cb742_story.html
