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US Court Order Could Threaten PDVSA Assets

US Court Order Could Threaten PDVSA AssetsUS Court Order Could Threaten PDVSA Assets

Venezuela's state-owned PDVSA's dependence on its US unit Citgo for refined products and diluents could be jeopardized by a US court order on Thursday, which may result in the company losing control over its most valued assets.

US District Court Judge Leonard P. Stark issued an order on Thursday granting Canadian miner Crystallex's request to include shares of the PDVSA holding company that owns US refinery Citgo as part of Crystallex's efforts to collect $1.2 billion it is owed by Venezuela, Platts reported.

Crystallex was awarded the $1.2 billion in June 2017 over a dispute concerning Venezuela's nationalization of Crystallex assets.

Thursday's ruling in the Delaware court opens the door for Citgo's other creditors to seek similar relief.

But because no attachment order was issued on how to implement the judgment, exact ramifications on what will happen to PDVSA's crown jewel Citgo is uncertain.

A public version of the order is not expected to be released until later this month.

Thursday's order requires Crystallex and PDVSA to confer "no later than August 16" and submit a joint status report on "how this case should now proceed."

Citgo is not releasing a comment on the ruling at this time, a company representative said via email on Friday.

 

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