Showdown Looms Over Citgo-Backed PDVSA Bond

摘要

Venezuela’s political opposition is working behind the scenes to ensure that state oil company Petroleos de Venezuela (PDVSA) does not lose control of US refining subsidiary Citgo if an upcoming bond payment guaranteed with Citgo shares is not paid. PDVSA has a $915 million payment coming due on Oct. 27 for a bond that is guaranteed with 50.1% of Citgo’s shares. That means if payment is not made the bondholders could seek to take control of the refiner.