US Extends Citgo’s License to Protect it from Creditors until August

The U.S. Treasury Department has extended a license protecting Venezuelan oil refiner Citgo Petroleum from creditors until mid-August. This license prevents creditors from enforcing judgments related to previous expropriations and debt defaults. The announcement was made on the department’s website.

The Treasury’s general license prohibits transactions involving the 2020 bonds of the Venezuelan state oil company PDVSA in the upcoming months. These bonds were backed by a portion of Citgo’s assets.

An auction of shares in a Citgo parent company, organized by a U.S. court to generate funds for paying off Venezuela’s debts, is set to conclude in July. This auction could result in a change of ownership of the seventh-largest refinery in the U.S. A separate license from the Treasury will be required to finalize any sale.

You can find more information in the original article by Reuters.